Well, well. News of Netflix’s upcoming price increase brought many internet tears on Thursday. Now a rival in the online streaming wars may do the same, except Hulu‘s price increase will contain a few twists. Variety reports how Hulu’s price increase isn’t a done deal yet, and it won’t be mandatory for all users. Instead, the subscription VOD service will add a different price tier for those who wish to avoid commercials:
In addition to maintaining its current $7.99 version with ads, Hulu would make a second version available for a price in the neighborhood of $12-14. While that price point would be more expensive than most SVOD options in the U.S. marketplace, the logic behind the move is that would avoid siphoning away the 9 million subscribers already paying for the current version.
Although internet users love to complain about commercials while streaming video, there may not be a huge demand for this new price tier. Is it really worth avoiding ads on Hulu for a few more dollars? We’ll soon find out whether people will bite at the new package. Hulu’s dual revenue stream has proven lucrative, but allowing viewers to pay more to avoid commercials could prove to be a genius move.
(Via Variety and Washington Post)
