Friday, January 04, 2013

The Empty Billion Dollar Shell

The prolectivities of the online media world are nowhere more apparent than in today's news that Jason Kilar, CEO of Hulu, is to leave the company along with its CTO.

Anyone who can build a $700m business in five years is a serious player and the only questions have to be: why ? And: where next ?

As this blog has repeatedly pointed out, Hulu is an empty vessel and is so beholden to its powerful, content-owning, shareholders that it has little or no value and therefore cannot be floated or sold.

For an ambitious, successful senior management team that's purgatory.

This is fast becoming the way of multimillion pound businesses in the twenty first century. They achieve massive turnover very rapidly, but investors cannot see where they can get a return. Facebook has changed the rules in that respect.

Part of me wonders if Mr Kilar might not turn up at Apple, or perhaps he will now do his own thing outside the poisoned chalice. But my bet is on Netflix, where the management team has been sullied by bad commercial decision making and poor technology.

It's a strange day when the CEO of a massively successful company walks away as it achieves its greatest growth.