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State of the Screens

Hulu hopes to make ads part of your binge session

By December 19, 2019No Comments

Hulu is launching a special ad unit aimed at binge-watchers.

What is a binge-watcher?  Hulu defines a binge-watcher as anyone who watches 3+ episodes of a show consecutively.

How common is binge-watching?  Binge-watching accounts for 50%+ of the ad-supported hours on Hulu, and 75% of U.S. consumers binge their favorite shows.

The partners for this test include:
1) Cheez-It
2) Maker’s Mark Bourbon
3) Sparkle Paper Towels

The types of binge-ad formats, according to Axios:
1) Ad-free episode
2) Promotion ads

Hulu subscriptions (% of total) by type according to Bernstein Research:
1) Ad-Supported – 18.4M (63%)
2) Ad-free – 7.9M (27%)
3) Live – 2.7M (10%)
4) Total – 29.0M

Hulu advertising revenue in U.S. (YoY growth) according to eMarketer:
1) 2016 – $873M (↑ 16%)
2) 2017 – $986M (↑ 13%)
3) 2018 – $1.1B (↑ 16%)
4) 2019P – $1.3B (↑ 15%)
5) 2020P – $1.5B (↑ 13%)

Hulu viewers by year (YoY growth):
1) 2016 – 32.7M
2) 2017 – 43.1M (↑ 32%)
3) 2018 – 64.5M (↑ 50%)
4) 2019P – 75.8M (↑ 18%)
5) 2020P – 86.2M (↑ 14%)

Hulu advertising revenue per viewer:
1) 2016 – $26.65
2) 2017 – $22.88
3) 2018 – $17.66
4) 2019P – $17.29
5) 2020P – $17.21

More #1: Peter Chernin: ‘There’s No Reason Hulu Shouldn’t Be Netflix Today’

More #2: Hulu’s Peter Naylor on Changing the Advertising Model

More #3: Hulu is raising price of its live TV service to $55 a month

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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