My theory is that Hulu should take its cue from Flickr. flickr annual fees are
24.95. I believe that anyone will spend 24 to 36 dollars a year for a beloved internet service. When hulu premium costs 24, the increased users will make up for the lower per user revenue. That’s my theory, anyway.
To speak anecdotally, any service that can play me a good episode of the Bob Newhart show for free and get me to watch 4 but only 4 ads to do so, is win/win/win for everyone, economically.