Published on January 23rd, 2019 | by Brad Gibson0
Hulu raises price of live TV service $5, cuts basic plan price by $2
Hulu’s basic plan – which lets users stream TV shows with ads but doesn’t include live programming – will be reduced 28 percent from $7.99 a month to $5.99 a month starting February 26.
Hulu also decided to raise 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, which announced January 8th it had surpassed 25 million subscribers, 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. In 2018, the company said its advertising revenue increased more than 45 percent to $1.5 billion.
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 last week.
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.