Almost every tech journal has carried this news and we for sure know its coming. Hulu may be selling a stake to TWC to raise cash for its original content strategy and a few other strategic changes are also set to be announced. But this is not the first time Hulu has stuck out an arm for such radical changes.
Couple of months ago, Hulu brought an an ad-free option plan for its users at $11.99 per month. At the moment, Hulu’s free service is ad-supported and a $7.99-per-month service provides content with fewer ads.
In terms of content, Hulu is acquiring numerous original content or exclusive SVOD rights to programs like The Mindy Project, Seinfield and South Park. After its recent agreement with Turner for content, Hulu has renewed its agreement with Viacom for exclusive SVOD rights to its programming.
While Hulu offers a basic ad-supported subscription plan for $7.99 per month and an ad-free premium plan, priced at $11.99 per month, Netflix’s does it at an an average $10 per month. Others like Time Warner’s HBO Now and Dish Network’s OTT TV platforms are ‘really’ expensive, at $15 and $20, respectively.
At the moment, Hulu is churning a combination of strategies to compete with its rivals. A strategy that distinguishes it from all services of its kind. It is buying programmatic content at ridiculous prices to meet with customer demand and also putting up an ad-free option for those willing to get rid of ads. Not only does Hulu intend to retain customers on basis of content, but also the lack of ads.
All the while making a lot of money through it existing ad-backed service. This crafty reinvention of Hulu by Hulu itself is a must learn for everyone in the streaming business.
Source : Market Realist