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State of the Screens

Hulu Hikes Price of Live-TV Bundle to $45 Monthly, Drops VOD Plan With Ads to $6

By January 30, 2019No Comments
Big news #1: Hulu is raising prices on its live TV service while lowering the price on the streaming video-on-demand offering.

Price change for Hulu Live (% change):
Old — $39.99
New — $44.99 (↑ 13%)

Price change for Hulu streaming video-on-demand (SVOD) service (% change):
Old — $7.99
New — $5.99 (↓ 25%)

Big news #2: Netflix is raising prices on both its standard and premium offering.

Price change for Netflix standard plan (% change):
1) Old — $10.99
2) New — $12.99 (↑ 18%)

Why this matters: First, it is important to remember that this Hulu package has ads compared to a Netflix offering that does not. Second, Hulu is probably seeing the same math as NBCUniversal where addressable video ads are extremely valuable. For example, if Hulu can generate $5/user/monthfrom advertising, then dropping the price by $2 makes total sense if they can grow their user base.

Video: Hulu Makes a Move to Lower Prices

More #1: Remind Us — Why Does Hulu Exist, Exactly?

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.