Dive Brief:
- In late July, Hulu announced a new ad-free version of the streaming TV service that was expected to cost four to six dollars more a month than its ad-supported $7.99 version.
- The new commercial free option has arrived and will cost viewers on the low end of pricing speculation at $11.99 per month, but more than its most direct competitor in Netflix.
- Hulu's CEO stressed that the move by no means foreshadows the streaming company's exit from the ad business, and that they remain very much focused on their core ad business.
Dive Insight:
In an anticipated move, Hulu announced an ad-free version of its streaming video service Wednesday that will cost streamers $11.99 per month, compared to the ad-supported "Premium" version at $7.99. Hulu also offers a completely free version that is entirely ad-supported. The company describes the $7.99 option as forcing “limited commercials” on viewers.
CEO Mike Hopkins told Adweek, "What we've heard loud and clear is that some segment of our customers would like us to offer a commercial-free plan at a higher price, and so that's what we're doing,” and added, "This is not our exit from the ad business by any stretch. Advertising will continue to be central to our business."
Hulu also recently introduced a private programmatic video ad exchange built on Facebook’s LiveRail video ad technology. That marketplace covers desktop, mobile and connected TVs for automated ad buys.