Hulu Cuts Subscription Price by 20% with Aim of Taking on Netflix Bloomberg

Hulu is reducing the price of its subscription service by 20%, heating up its competition with Netflix, reports Bloomberg News.

Hulu Plus will now cost $7.99 per month, versus its pricing during the service's trial period of $9.99 each month, the story says. Hulu Plus directly competes with Netflix's test of a $7.99 monthly cost for an online streaming-only service in the U.S.

Netflix already offers a plan that costs $8.99 per month for unlimited streaming and DVD rentals, the story notes. Hulu customers who had signed up for the $9.99 service will receive a credit toward their next billing cycle, and new subscribers will receive a one-week free trial, the story notes.