Hulu users can finally watch ad-free programs for $11.99
Hulu is pitting itself against Amazon Prime and Netflix with a new, ad-free tier.
For $11.99 a month, users can watch the streaming service’s slate of shows without having to sit through ads, the company announced today. The new option is $4 more a month than its existing pay tier, formerly known as Hulu Plus, that has limited commercials. It also will continue to offer a free, ad-supported version that provides limited access to its library.
Hulu is jointly owned by NBCUniversal, Disney and 21st Century Fox, which owns broadcast networks that bank on ads shown on its networks to make money. Hulu’s library includes the entire “Seinfeld” catalog, dozens of cable programs, original programs like Fox reject “The Mindy Project” and episodes that are usually added the day after airing on television.
The steep price increase between the existing $7.99 tier and the new $11.99 option is intended to induce Hulu’s nine million subscribers to “keep the version they have, and not hasten the erosion of the ad model,” Recode reported.
There’s one major caveat, however. Seven shows will have a 15-second ad at the beginning and a 30-second at the end, but none during the program. They are five ABC shows (“Scandal,” “How to Get Away With Murder,” “Agents of Shield,” “Grey’s Anatomy,” “Once Upon a Time,”), Fox’s “New Girl,” and NBC’s “Grimm.”
So if Hulu CEO Mike Hopkins expects that a “solid majority” of subscribers will keep paying for the limited commercial tier, why introduce an ad-free model? Competition and demand.
After adding Seinfeld to its library in June, Hulu noticed people complaining about the ads making their viewing experience annoying, according to The New York Times. Hopkins hopes the new tier will appeal to Netflix and Amazon Prime users, too.
“You can split people into two categories: ad avoiders and ad acceptors,” Hopkins told the Times. “There are clearly people who just are not going to buy Hulu because there are ads. We think we can bring them back into the fold with new content and this new choice.”
Image courtesy of Hulu.
With media optimization a game of diminishing returns, advertisers turn the screws on creative quality online
Media optimization has compensated for lacklustre creativity online for years. Some advertisers worry that’s increasingly not possible.
‘TikTok is changing small brands’ lives’: How a startup drink brand is using the social platform, after going viral on it
After going viral on TikTok last year, drink startup Poppi has leveraged influencers to maintain its presence on the short form video app.
Member ExclusiveMarketing Briefing: With fewer live events and opportunities, the Super Bowl may be even more important for marketers this year
With the Grammy’s recently postponed and the Golden Globes off the air, the opportunity to reach live audiences this time of year have dwindled outside the Super Bowl.
Sponsoreddigital out of home
what is DOOH
‘Music is definitely connected’: How a record label fits into a wider media ambitions for G2 Esports
What started out in earnest as a passion project for esports organization, quickly became an extension of ongoing efforts to build a media business.
‘There’s only so much low-hanging fruit’: Why advertisers are ramping up more full-funnel marketing strategies
As the future promises less tracking and a more crowded digital marketplace, advertisers look to fire on all cylinders and meet customers where they are.