That's right, Hulu is a network, not a TV producer (well, technically they do produce at least one show that I know of). Modern Family's producers get paid eve

That's right, Hulu is a network, not a TV producer (well, technically they do produce at least one show that I know of). Modern Family's producers get paid every time Hulu airs a show. All they have to do to make money is price it appropriately. Let's do some napkin math, shall we? Let's say Modern Family has 20 million regular viewers. Let's say it costs them $5 million to make one episode in production costs, actor salaries, etc. They can charge Hulu or Apple $0.50 to show an episode to a viewer, and then Hulu can either choose to sell 4 30 second ad slots for $0.25 each, or Apple can choose to charge $0.99 per episode. The producers made $10 million revenue for 50% profit, Hulu/Apple also made $20 million revenue for 50% profit, everybody wins. The problem is that the cable companies and networks are used to being able to double and triple dip at the well of consumer spending. Charging for content and ads is double dipping. Bundling channels I don't want with the few channels I do want is triple-dipping. Why should they be allowed to do that? There is plenty of profit to go around, but the cable companies might not like having their piece of the pie made smaller.