Hulu Drops Prices
You may have heard by now that Netflix raised monthly subscription prices last week, but the good news is that its main competitor has just dropped their prices to stay competitive! Just one week after the Netflix price hike, Hulu drops prices of their most popular plan to just $5.99 per month, beginning February 26. Previously, this Hulu ad-supported subscription plan previously cost $7.99 per month. Within this announcement, Hulu also stated that the company will also be raising the price of its Live TV plan to $45 per month, which would be an increase of just $5. The streaming service’s on-demand plan without ads will remain unchanged at $12 per month.
Hulu Stays Competitive Against Netflix
Consumer Affairs reports that with these new streaming services being launched all the time, Hulu is aiming to stay competitive in the video streaming sector.
Netflix announced last week that its most popular plan will now cost $9 per month, up from $8. Netflix said it occasionally raises prices to help offset content costs. At the start of last year, the company said it planned to spend around $8 billion on original TV shows and movies in an effort to boost its subscriber numbers.
While Hulu’s price drop won’t equate to an increase in its revenue, the move “could lock in customers ahead of key streaming launches from media giants,” CNBC noted.
AT&T is set to launch a three-tiered streaming service in late 2019. NBCUniversal also revealed recently that it will be launching its own streaming service for those who pay for traditional TV, and Disney is also gearing up to launch two of its own streaming services.
Hulu announced earlier this year that it added eight million new subscribers in 2018, bringing its total to 25 million. The streamer still has some catching up to do with Netflix, which had about 58 million subscribers as of last fall.
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