Hulu reportedly plotting a more expensive, ad-free service

17 Jul 2015

Hulu is currently exploring the possibility of adding a more expensive tier to its video-streaming service that would give subscribers the option of viewing content without the ads.

That’s according to Wall Street Journal reports that claim the alternative facility could launch in the US this autumn and would be priced between US$12 and US$14 per month. Hulu’s current ad-supported service costs US$7.99 a month.

This new strategy is likely being prepared by the company as a way to compete with industry leader Netflix. The long-time ad-free service recently reported a growth of 3.3m new subscribers, up from 1.7m subscribers a year ago. In total, Netflix has 65m subscribers – 42m in the US and 23m internationally. In April, Hulu hit the 9m member mark. Despite the move, reports claims that the ad-supported tier will remain an option for potential new customers.

Hulu continues to be aggressive in its attempts to close the gap on rivals. It was recently revealed that the Los Angeles-based firm will pay out US$192m to hold onto its exclusive streaming rights to South Park for an additional three years, adding to the two remaining on the existing contract. Hulu is currently the only service of its kind to offer all 18 seasons and 254 episodes of the show. This year had already seen the company agree to pay US$160m for Seinfeld, while it has also acquired all 300 episodes of CSI.

Dean Van Nguyen was a contributor to Silicon Republic