Hulu is getting more expensive for some people and cheaper for others. The streaming service is adjusting its rates, just a week after Netflix raised its prices.
Starting next month, Hulu With Live TV will increase by $5 per month, rising from $39.99 to $44.99 per month (a 12.5 percent increase). Meanwhile, the ad-supported video-on-demand service will now cost $5.99, a $2 decrease.
(The ad-free VOD plan will remain unchanged, at $11.99 per month.)
The new pricing will go into effect beginning Feb. 26 for new subscribers. For existing subscribers, the changes will be reflected in their next billing cycle after Feb. 26.
Hulu is dropping the rate on its cheapest plan just as Netflix is rolling out its biggest subscription hike yet. By enticing new customers with the price decrease, Hulu is hoping to grow the audience for its ad-supported business. The company claimed ad revenue jumped more than 45 percent in 2018, to nearly $1.5 billion.
As for its Live TV package, Hulu is seeking to make it more profitable after adding nearly a dozen channels in 2018.. It now includes more than 60 channels, including local broadcast channels for ABC, CBS, NBC and Fox.