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Hulu is set to increase its prices after Disney+ and ESPN+ announced their own $1 rate hike not long ago. The brands are Hulu’s sister companies so it was not surprising when it also imposed a new increase on fees.
According to CNBC, On Tuesday, Sept. 7, Hulu confirmed that it will be raising its prices specifically for its ad-supported plan that will now cost $6.99 per month. For its ad-free plans, it will now cost $12.99 per month. Both rates showed a $1 increase and the changes will take effect on Oct. 8.
It was clarified that the price increase will not affect the Disney bundle or live TV plans. The new rates will apply to new and existing Hulu subscribers.
In any case, the company initially lowered its prices to attract new subscribers but as it started to gain more registrants, Hulu had to spend millions to produce more content. As a result, they decided to increase the rates so they can continue to deliver more exclusive films and shows.
“A good chunk of our marketing now is going toward the bundle,” Variety quoted Disney’s chief executive officer, Bob Chapek, as saying during the company’s earnings call last month. “While we enjoy extremely low churn rates on our individual services, the churn rates on the bundle are even lower and surprisingly low even for us.”
Business insiders stated that one of the streaming platform’s main selling points is that it is the only service that offers next-day access to its subscribers for current programs that are being broadcast on U.S. major TV networks. It was added that despite the fact that NBC, CBS, and Fox may cancel their deal with Hulu next year, it is still a good decision to be its subscriber due to the great content it provides.
Meanwhile, Hulu recently scaled up its focus on original films and TV series so there are more things to expect. It was mentioned that it was able to secure rights to some series including “Nine Perfect Strangers,” “Vacation Friends,” and more.
