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http://www.broadcastingcable.com/news/next-tv/hulu-offers-ad-free-subscription-tier/143832
Hulu Offers Ad-Free Subscription Tier
Continuing a newsy 2015, Hulu announced Wednesday it has added a new
commercial-free subscription tier, confirming speculation from earlier this
summer.
For $11.99, $4 more than the regular subscription fee, viewers get an SVOD
experience comparable to that of Netflix and Amazon Prime.
Just two years after yanking Hulu off the market after months of sale attempts,
Hulu’s majority stakeholders (Disney, Fox and NBCUniversal) have been investing
heavily and making aggressive moves in the war for SVOD attention against its
even-deeper-pocketed rivals.
This year alone, there have been numerous headlines. The company removed the
“Plus” designation from its subscription service. (An ad-supported version is
still available on desktop and laptop computers, but not mobile devices.) It
reported having 9 million subscribers last spring, a 50% jump from 2014 levels.
Driven by the content supply of its owners but also including flagship
properties from outside such as South Park and Seinfeld, Hulu now has some 170
individual programs available. This week it wrested Epix film content from
Netflix, which will bring notable franchises like Hunger Games and Transformers
to the service. It also made news this summer by debuting an $8.99 a month
version of Showtime’s premium offering, which was the first time it had been
offered directly to subscribers. Its originals lineup has expanded to include
Difficult People, Casual and the upcoming 11/22/63.
“At Hulu, we pride ourselves on listening to our customers and giving them the
best possible experience,” said CEO Mike Hopkins. “Many of our customers have
asked us for a commercial free option, and so today we are excited to introduce
just that. Providing more choice for consumers is fundamental to the Hulu
experience, in addition to an array of choices in content and devices, our
customers can now choose to watch with or without commercials.”
In announcing the new commercial-free option, the company also pointed out that
both its fully ad-supported and its $7.99 subscription tier feature advanced ad
targeting. The $7.99 level also has fewer ads than would appear in a typical
linear broadcast, Hulu said.
