Hulu Adds Ad-Free Subscription Option

Hulu finally jumped off the cliff, adding an ad-free subscription tier to its menu of options, according to the Hulu blog. This new option

Hulu finally jumped off the cliff, adding an ad-free subscription tier to its menu of options, according to the Hulu blog. This new option will help Hulu compete with Amazon and Netflix in the ad-free streaming video world.

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We first covered the ad-free option when the rumors began in July. The rumors have come to fruition, and fans can now binge watch their favorite shows without the commercials for just $11.99 a month. Subscribers willing to sit through limited commercial interruptions will remain at $7.99 a month.”At Hulu, we pride ourselves on listening to our customers and giving them the best possible experience,” said Mike Hopkins, Hulu CEO in Wednesday’s announcement. “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.”This is the latest in a series of strategic changes and partnerships Hulu has implemented to solidify its place in the growing OTT market. Another recent change is Hulu’s partnership with EPiX, with whom it signed a multi-year deal to bring subscribers movies from Lionsgate, MGM and Paramount. [Earlier this week, Netflix announced it is ending its five-year agreement with EPiX.]In addition, Hulu has signed licensing deals for exclusive subscription streaming rights to entire libraries of hit shows like Seinfeld, Empire, Fargo, South Park and CSI, and it is the only video on-demand service that offers Showtime as an add-on for $8.99 more per month.Insider Take:Since its 2008 launch, Hulu has grown to 9 million U.S. subscribers. While it has a sizably smaller audience than Netflix’s 65 million members worldwide, Hulu is leveraging its strengths and its relationships to evolve and better meet the needs of the streaming video market.It has made great strides in the last year to give viewers what they want, including securing exclusive programming like Seinfeld, offering original programming with shows like Difficult People, and keeping The Mindy Project alive after it was canceled by Fox. Hulu may eventually need to drop its price to compete with Amazon, Netflix and a host of other OTT services coming online, but Hulu is moving in the right direction.~ Dana Neuts, Subscription Insider    

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