By launching its own marquee shows, Hulu hopes to keep subscribers on its service longer. That’s important because Hulu has high turnover rate. A report from Parks Associates found that 7 percent of U.S. broadband households had canceled their Hulu subscription in the last 12 months, a figure that represents about one-half of Hulu’s current subscriber base, according to Parks.
From the article "Hulu is becoming a player in streaming" by Yvonne Villarreal.
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Beyond that, AT&T also gets revenue by licensing those movies and TV series to other pay-TV providers and subscription Net TV services such as Netflix. "Video and entertainment will remain the key dri...
