Several different network affects are at play with Hulu. First, an increase to the amount of video content on the site provides a positive cross-side network affect for customers of the service. The more movie and tv options that are available, the better the value proposition for Hulu users. A possible negative, IT related network affect can occur through an increase in users to the site by increasing the load on Hulu's servers and decreasing the performance of the service. Conversely, a positive cross-side network affect can occur for content providers and Hulu if user load increases. The more users on the service the higher the revenue potential of and marketability of the service.
These effects impact Hulu's business model by:
- Focusing Hulu's growth efforts on content acquisition. They try to partner with as many content providers as possible.
- Ensuring their system up time and high performance is constent
- Growing their marketing options for advertisers on their site.
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