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Jan. 12 (Bloomberg) -- Hulu LLC, the online TV service, plans to spend $500 million on programs this year after paid subscribers surpassed 1.5 million in 2011.
Revenue last year totaled $420 million, the Los Angeles- based company said today on its website. The company predicted in April that 2011 sales would approach $500 million.
Hulu is signing up twice as many subscribers every day as it was a year earlier, Jason Kilar, chief executive officer, said in the statement. Hulu is spending on shows to compete for subscribers with Netflix Inc. and for online advertisers with Google Inc.’s YouTube and Yahoo Inc.
Hulu’s owners, which include Walt Disney Co.’s ABC, News Corp.’s Fox and Comcast Corp.’s NBC, called of an auction of the website in October, saying the strategic value of the business outweighed the benefits of a potential sale.
In July, the company predicted total subscribers would top 1 million during the third quarter.
More than half of revenue will come from the $7.99-a-month Hulu Plus service later this year, Kilar said.
--Editors: Rob Golum, Anthony Palazzo
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