Netflix made headlines recently for raising the prices of all its U.S. subscriber plans, and now Hulu is making the same move while also lowering one of their packages. As Variety reports, the basic ad-supported streaming package from Hulu is lowering from $7.99 to $5.99 per month. However, they will also be hiking the price of Hulu With Live TV by $5.
The price of the live TV bundle will rise from $39.99 to $44.99 per month, a 12.5 percent increase. The ad-free video-on-demand option will keep its current price, remaining $11.99 per month. The new pricing isn't immediate, and will go into effect from Feb. 26 for new subscribers, while existing subscribers will see the price hike come into effect in the next billing cycle after Feb. 26. Ad revenue reportedly rose over 45 percent in 2018 for Hulu, so it makes sense they want to increase interest in their ad-supported tier.
The news follows the announcement that Netflix would be making its biggest price hike yet, with their premium and standard plans rising by $2 each. "We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience," a Netflix spokeswoman said.
In November 2018, Disney officially valued Hulu at more than $9 billion. Netflix's price hike didn't impact the subscriber count substantially, actually helping stock rise by 6.8 percent the morning after the news hit.