On Wednesday, Hulu announced changes in pricing plans for different services. The announcement was of pricing mix, as it is raising the price of its TV option whereas lowering the price of its videos.
Hulu is in a tough competition with rivals Amazon and Netflix and to attract more subscribers in the midst of Netflix who raised its prices by 18 percent effective immediately just a week earlier, Hulu has announced to cut the price of its standard subscription package by $2. Making a most affordable video streaming service in the United States, the ad-supported most popular monthly plan which was available at price of $7.99 a month will now cost $5.99 a month, however, the price of ad-free version of that plan will remain $11.99 a month.
As part of changes announced, the monthly price of its live-TV package, which is already the highest priced plan of Hulu, will be raised by $5 from $39.99 to $44.99.
To lure more subscribers, streaming services including Hulu, Amazon and Netflix are coming up introducing attractive plans along with aggressively creating more original content.
Earlier this month, Hulu had announced that at the end of 2018 with the addition of 8 million subscribers in the year, total number of its subscriber in the United States came to a total of 25 million while, as of September last year, Netflix was holding 58.5 million subscribers in the country. At the end of 2018, Netflix counted nearly 139 million users globally.
This year, Disney and AT&T are planning to launch the streaming services, after which the streaming industry is expected to be facing a more intensified competition, while AT&T is already running streaming service of HBO Now, which cost $14.99 a month.
Hulu’s new prices will go into effect on Tuesday, Feb. 26 for new subscriber while existing customers will not see a change in their bill until the first billing cycle after that date.