Hulu has just announced that the price of its subscription-based subscription plan, supported by advertising, has dropped to $ 5.99 a month – from the current $ 7.99 – beginning February 26. Hulu had previously offered its service on a promotional basis at $ 5.99, and it clearly makes a difference if it attracts subscribers to justify a price drop for the standard rate. If you are worried, customers will not notice an increase in ad volume due to reduced prices. The "no advertising" price of $ 11.99 per month remains at the current price, as well as the combination subscription of Hulu / Spotify for $ 1
Price erosion comes just days after rival Netflix announced increased subscription fees for all of its plans. The most popular plan (with HD streaming) is now $ 13 per month. Of course, Netflix content is ad-free, but Hulu is now creating enough cost recovery to make the commercials easier for consumers to endure. Hulu had announced earlier this month that it ended in 2018 with over 25 million subscribers. That's less than half of Netflix's 58 million US customers, but the number of subscribers grew by a sizeable 48 percent compared to the number of subscribers who were at the end of 2017. However, Hulu has its own price increase: The company is raising the cost of Hulu with live TV service, which will rise to $ 44.99 instead of the current $ 39.99. As a result, the gap between Hulu's standard offer and Internet TV offerings is widening, yielding a dollar of just under $ 40. The justification for the price increase is increased channel selection – Hulu reached an agreement with Discovery, Inc. in September – and improvements to the reliability and usability of the live TV experience. However, this is just the harsh reality of these streaming TV services: they have the same hurdles as cable providers when they do business with networks and broadcasters, and the main ones are all money losers. It is inevitable that prices will continue to rise. You also have to keep in mind that Hulu with Live TV includes the full on-demand product, which is relatively unique with these services.
To compensate for the higher subscription fees, Hulu lowers the fees for the optional additional features of the Live TV service: both the advanced DVR and the expanded multiscreen display packages decrease from $ 14.99 to $ 9.99. The DVR option gives customers more storage space (200 hours versus 50 hours for standard live TV subscribers) and allows them to quickly advance through advertising in DVR content.
The big unknown is how these prices could change once Disney acquires the majority of Hulu. Since this agreement has not yet been fully approved, Hulu was not yet ready to speculate on what is to come. Disney executives have seen Hulu as an important element of the company's streaming strategy: the service is more adult-oriented than Disney +, and it only offers many of the TV hits that are not available on other platforms like Netflix (For example, 30 Rock, Futurama, Lost, Seinfeld, and South Park ). The company was happy to spend a lot on licensed content, especially on the 90s shows. Netflix struck back against Hulu's strategy late last year by spending $ 100 million to retain Friends on its platform.
In addition to the Disney uncertainties, Comcast points out that it is not intended to sell its 30 percent stake in Hulu quickly. The WarnerMedia from AT & T owns the remaining 10 percent. While Disney will be in control as soon as the Fox deal is over, other voices will be at the table for the time being.
The new Hulu and Hulu with live TV rates will come into effect on February 26 for new subscribers. Existing customers will be upgraded in their next billing cycle after this date.