Netflix may be adding new shows to its streaming service, but Hulu just got a whole lot cheaper!
Just a week after competitor Netflix raised prices for its services, Hulu has dropped the price of its cheapest package by $2. Hulu’s basic plan, which includes ads, will cost $6 per month starting Feb. 26, the company announced Wednesday. The streamer also said that it would raise the price of its Live TV plan to $45 per month, which is a $5 increase. However, the price of its on-demand plan without ads will remain $12.
The company is making their streaming service a more affordable option as more consumers abandon cable and satellite services in favor of streaming.
“It makes sense to skim some of the market that is up for grabs and come in at the lower end of pricing,” said Ivan Feinseth, director of research at Tigress Financial Partners.
Along with potentially attracting budget-conscious viewers, lowering the price of its basic plan could benefit Hulu by helping consumers keep their monthly subscription costs for a streaming bundle to around $19 a month. This is because 90 percent of Hulu users also subscribe to Netflix.
Hulu has spent the last year focusing on domestic subscription growth. The company added eight million new subscribers in 2018, bringing its total to 25 million. In addition, Hulu also grew its advertising revenue to nearly $1.5 billion last year. The company’s gains in the U.S. last year surpassed Netflix’s — the latter streamer added about 5.7 million paid domestic subscribers, according to it most recent earnings report.
By: Maytinee Kramer
