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Published on February 26th, 2019 | by Brad Gibson

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Hulu kicks in prices changes for its on-demand and live services

Hulu activated Tuesday already-announced pricing changes to its basic, on-demand service as well as an increase for the cost of its live TV service.

Hulu announced the planned price changes in late January. Hulu’s basic plan – which lets users stream TV shows with ads but doesn’t include live programming – has been reduced 28 percent from $7.99 a month to $5.99 a month.

Hulu has also raised the price of Hulu + Live TV with limited advertisements by $5 to $44.99 a month, an almost 12 percent increase. This marks the first time Hulu has raised the price of its live TV service. Hulu’s other tier, which allows users to stream TV without ads, will remain at $11.99 a month.

Hulu hopes that lowering prices will grow an audience for its cheapest plan which streams advertisements. In doing so, it plans to offset the price cut by making more money selling advertising.

The price increase will help the streaming service invest more heavily in original content to compete with Netflix, Amazon Prime Video, and Apple’s yet-to-launch entertainment service that are spending billions on programming. Hulu’s move comes after a similar price jump made by Netflix in January.

Hulu is jointly owned by Comcast Corp., Walt Disney Co., 21st Century Fox Inc. and AT&T’s WarnerMedia. When Disney’s acquisition of 21st Century Fox closes later this year, Disney will take a 30 percent position in Hulu, giving it a 60 percent interest overall in the streaming service. Comcast has a 30 percent stake in Hulu, and WarnerMedia holds the remaining 10 percent.

Hulu with Live TV launched in May 2016. The app, which also includes the on-demand service, is available for free in the App Store.

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About the Author

Brad is co-founder and editor-in-chief of BESTAppleTV.com. He has been a technology reporter since the late 1980s having previously worked for MacUser, MacFormat, and iCreate magazines, as well as MacNN.com, MacObserver.com, MacCentral.com, MacMinute.com, and Macworld.com. He hosted and produced the MacFormat This Week podcast for three years. He was also a reporter, editor, and producer for the Associated Press and United Press International.



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