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Hulu *cuts* price of ad-streaming service, raises price on Live TV


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https://www.theverge.com/2019/1/23/18193539/hulu-price-change-subscription-ads-live-tv-2019

 

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Hulu just announced that it will lower the price of its base, ad-supported subscription plan to $5.99 per month — down from the current $7.99 — beginning on February 26th. Hulu has offered its service at $5.99 previously on a promotional basis, and it clearly makes enough of a difference at pulling in subscribers to justify a price drop for the standard rate. In case you were concerned, customers will not see an increase in ad volume because of the reduced pricing. The $11.99-per-month “no commercials” plan will stay at its current price, as will the $12.99 Hulu/Spotify combo subscription, which Spotify handles billing for.

 

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However, Hulu does have one price hike of its own: the company is increasing the cost of its Hulu with Live TV service, which will jump to $44.99 instead of the current $39.99. As a result, the gulf between the standard service and Hulu’s internet TV offering is growing wider and a dollar shy of $40. 

 

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I don't expect this to really affect Netflix's numbers much. According to their recent quarterly report, they hardly even consider Hulu a competitor. Their prefered metric is % of screen time, and they're continuing to grow in that regard.

 

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In the US, we earn around 10% of television screen time and less than that of mobile screen time. In other countries, we earn a lower percentage of screen time due to lower penetration of our service. We earn consumer screen time, both mobile and television, away from a very broad set of competitors. We compete with (and lose to) Fortnite more than HBO. When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time. Hulu is small compared to YouTube for viewing time, and they are successful in the US, but non-existent in Canada, which creates a comparison point: our penetration in the two countries is pretty similar. There are thousands of competitors in this highly-fragmented market vying to entertain consumers and low barriers to entry for those with great experiences. Our growth is based on how good our experience is, compared to all the other screen time experiences from which consumers choose. Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members.

 

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10 minutes ago, SFLUFAN said:

Which is totally fine and the ads themselves are actually tastefully done:

 

Q119_Charmin_PauseAd_Still.jpg?resize=68

That is pretty well done (for an ad).  I would expect this to be copied by all the streaming services.  If it helps to delay or reduce price increases in the future I'm all for it.

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On 1/31/2019 at 9:55 AM, number305 said:

That is pretty well done (for an ad).  I would expect this to be copied by all the streaming services.  If it helps to delay or reduce price increases in the future I'm all for it.

I don't hate the ads but they need to do a better job at getting different ads instead of showing the same one.

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