Streaming video service Hulu will start offering subscribers an option to eliminate advertising during programs, the company announced today.
The move is significant because Hulu has traditionally thought to be against any business model that didn’t include commercials, which were identical to those found on cable and satellite television and nearly as lucrative. And since Hulu’s owners consist of major media companies (Comcast, Disney, News Corp.) — all firmly pro-advertising (or so it seemed) — it didn’t seem like that would ever change. However, it looks like the move was done at least in part to make Hulu more competitive against the likes of Netflix and Amazon Prime.
Hulu has priced the new ad-free option at $12 per month, $4 more than the base subscription, which the company will continue offering. At that price, it seems crazy not to spend a little bit more not to have to see the same irritating rotation of commercial interruptions 3 to 5 times per episode. (And with Fall TV premiere season right around the corner, I’m guessing a lot of people will chose to upgrade to ad-free.)
Developing.
Hulu subscribers can now go commercial-free originally published by Gigaom, © copyright 2015.
Related research and analysis from Gigaom Research:
Subscriber content. Sign up for a free trial.
- How mobile will disrupt the living room in 2014
- Frenemy mine: The pros and cons of social partnerships for online media companies
- Online video courts TV dollars
