Hulu is changing up its business model in a big way.
According to the Washington Post, Hulu is ditching its no-cost streaming service. Consumers will only have two options now, both of which have monthly fees. The move puts Hulu in the same ballpark as Netflix, whose services offers ad-free streaming on paid monthly subscriptions.
The two tiers users will have to choose from are the pre-existing $7.99-per-month service with ads and the $11.99-per-month service without ads. Business-wise, the change makes sense for Hulu, but for customers used to the ad-filled free service, it’s crummy news. Hulu is challenging some of its audience to pay a price comparative to Netflix’s most lucrative package for its ad-free tier. Not only does Hulu plan on changing its pricing strategy, but they plan on launching a live TV service in 2016. It’s ballsy.
It’s not all bad news for those looking to get free content. As the Washington Post notes, the deal stems from Hulu’s commercial partnership with Yahoo. Yahoo’s latest streaming service, Yahoo View (remember Yahoo Screen?), will offer the last five episodes of their network television shows for free.
Hulu is attempting to branch out and capture more of the market share of the streaming audience. Offering streaming packages comparable to Netflix is telling U.S. online streamers to make a choice based off of content. Time will tell if the gamble pays off.
