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

Big news #1: Huluis raising prices on its live TV service while lowering the priceon the streaming video-on-demand offering.

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

Price change for Hulu streaming video-on-demand (SVOD) service (% change):
1) Old — $7.99
2) 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?

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