Hulu adds commercial-free video streaming option for $11.99 a month
Hulu is finally going to give its subscribers an option to get rid of those pesky ads while watching current episodes of their favorite TV shows. The company has launched a new option that will offer commercial-free video streaming option for $11.99 a month.
The company stated:
People who are already signed up for the current $7.99 a month option, with ads, can switch to the new commercial-free subscription program for an extra $4 a month. The new $11.99 service comes as Hulu is expanding into offering more movies, including a new multi-year agreement to stream movies from the Epix cable TV network. It is also making more investments in original programming like its biggest rival Netflix, including the upcoming event series 11/22/63, based on the novel by Stephen King.
There is some fine print to this deal, however, as explained in Hulu's FAQ page:
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The business model makes NO SENSE at all... Pay for cable and you'll still see 20 minutes of ads and hour... If you make minimum wage in the US ($7.25) you "pay" about $2.40 an hour to watch TV... How much do you suppose THEY make? Well I dont know about hulu but i have looked it up for cable networks... What do you think revenue from advertising per viewer in prime time works out to? $2.40? HALF that? BARELY over 1/50th! This means that jacking up the price by $4 would MORE than pay for lost revenue from ads yet Hulu is the first to do this... What gives?! I mean if GLADLY pay hat to see TV without ads... In my hypothetical 16 hrs of watching a week (since I dont have it I am not sure whats normal but I tried to make it a "worst case") the view had "paid" over $50/month extra in lost time if they make MINIMUM WAGE... No one has even been able to explain to me how the economics of cable (and presumably Hulu with ads) comes even close to making sense.
Netflix is great for back catalog and kids shows, Hulu is great for current content. Two very different things for very different uses.