“Hulu is exploring plans to add an advertising-free option to its service, according to people familiar with the matter, as the streaming video provider tries to become a stronger rival to Netflix, reports the Wall Street Journal. [The WSJ is behind a pay-wall. A free alternative to this WSJ version of this story is this one at Engadget.]
The WSJ adds, “Such a move would be a significant shift in strategy for Hulu, which up to now has required users to sit through ad breaks during programming, even if they are paying $7.99 a month for its premium subscription service.”
The story continues, “Hulu’s code name for the project is ‘NOAH,’ which stands for ‘No Ads Hulu,’ the people familiar with the matter said. One of the people said the ad-free option could launch as early as this fall and be priced at around $12 to $14 a month. Such a price point, relatively high in the streaming world, would show that Hulu and its owners don’t want to encourage large numbers of existing subscribers to shift to the new ad-free service.”
Hulu is co-owned by Comcast, 21st Century Fox, and the Walt Disney Co.
Hulu is too late, too slow and too conservative to catch Amazon and Netflix. Like Microsoft trying to catch Apple in music and phones. Android only caught up to Apple because of pricing and innovation. Hulu can’t have it both ways. Ads for lower price and higher price for no ads. Unless they have some spectacular innovations coming, they are always going to be third.