Is Hulu's IPO supported by its Business Model?

Hulu Inc has announced plans in New York to issue an IPO this fall. For anyone who doesn't know, Hulu is an internet operator that streams TV shows and movies for comsumption on pc's and mobile devices. Consumers can buy subscriptions to its services.

The company reported gross revenues of about $100 million last year, but no significant profits. It's business model is based on streaming content on its site, under agreements with the content owners, such as ABC and NBC. The hitch is that a lot of their content is made available for free on the owners' websites, either in current streams or in archives.

The issue is - will this business model support a $2 billion IPO, especially in today's skittish investment market. It'll be wait and see until the fall. Here's a short article on the announcement.