Sept. 9 (Bloomberg) -- Hulu should start charging for some of its content, said Chase Carey, chief operating officer of News Corp., one of the video Web site’s owners.

“Ad-supported only is going to be a tough place in a fractured world,” Carey said today at a Bank of America Corp. conference in Marina del Rey, California. “You want a mix of pay and free.”

Carey’s comments underscore entertainment companies’ efforts find new revenue as traditional broadcast TV audiences shrink and DVD demand tumbles. He reiterated previous statements by Chairman and Chief Executive Officer Rupert Murdoch that News Corp. plans to charge readers for online access to more of its newspapers.

Hulu, whose owners also include General Electric Co.’s NBC Universal and Walt Disney Co., shows television programs and movies for free on its Web site. The clips contain advertisements that can’t be skipped.

Christina Lee, a spokeswoman for Los Angeles-based Hulu, didn’t immediately respond to requests for comment.

DVD sales have fallen this year, according to the Digital Entertainment Group, an industry trade organization. The business “is going through a transition,” Carey said.

The recession also has battered advertising sales at News Corp.’s TV stations, social-networking Web site MySpace and newspapers, which include the New York Post and the Wall Street Journal. The New York-based company reported a fourth-quarter loss of $203 million.

Fewer Films

News Corp. rose 11 cents, or 1 percent, to $11.29 at 4 p.m. today on the Nasdaq Stock Market. The Class A shares have gained 24 percent this year.

Carey, who is also deputy chairman, rejoined News Corp. in July after running pay-television service DirecTV Group Inc. since 2003. Before then he spent 15 years as an executive at News Corp., including as co-chief operating officer.

The economy is creating a “shakeout in volume” of movies being released, Carey said. News Corp., owner of Twentieth Century Fox, may benefit over the next few years, he said. The studio is in third place with box-office sales of $1.15 billion through Sept. 7, according to Box Office Mojo.

“You are going to have fewer films and fewer players and the strong players are going to benefit,” Carey said. Asked about acquisitions, Carey said News Corp. would rather be “building than buying.”

To contact the reporter on this story: James Callan in New York at jcallan2@bloomberg.net.

Last Updated: September 9, 2009 18:27 EDT