Hulu Lowers Premium Price, Becomes More Competitive with Netflix (NFLX, DIS, NWSA, AAPL, More...)
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Shares of Netflix (Nasdaq: NFLX) are holding up rather well this morning amid news that Hulu has cut prices on their premium service by 20% to $7.99 per month. Netflix shares are down 0.24% this morning.
Hulu, which is co-owned by General Electric (NYSE: GE), News Corp. (Nasdaq: NWSA), and Walt Disney (NYSE: DIS), previously had the price set at $9.99 which the feature rolled out in June.
Users can watch TV mainly from owners ABC, Fox and NBC, but other major TV networks have begun to supply episodes of their TV shows to the site. The media can be viewed from mobile devices such as Apple's (Nasdaq: AAPL) iPad, iPhone, and iPod, as well asSony's (NYSE: SNE) Playstation 3, Microsoft's (Nasdaq: MSFT) Xbox 360, Roku, and special Sony and Samsung TVs. The ability to watch on TiVo (Nasdaq: TIVO) will be coming shortly.
Hulu CEO Jason Kilar noted that they would provide a credit to those who signed up earlier.
The company made the move to break away from the model of relying solely on advertising to generate revs. Kilar has said that “Hulu Plus is already accounting for a material percentage of Hulu’s overall business.”
Movie offerings from Hulu are rather limited to things that you might flip through if you happen to have a Monday morning off. "Black Sheep," "Air America," and "Drunken Master," are just some of the selections offered from a quick flip through, a far cry from feature films available on Netflix. However, Hulu's new price is more competitive with Netflix, which offers its subscription for $7.99 per month as well. The competition could really heat up if Hulu begins to negotiate better deals with movie studios.
Hulu, which is co-owned by General Electric (NYSE: GE), News Corp. (Nasdaq: NWSA), and Walt Disney (NYSE: DIS), previously had the price set at $9.99 which the feature rolled out in June.
Users can watch TV mainly from owners ABC, Fox and NBC, but other major TV networks have begun to supply episodes of their TV shows to the site. The media can be viewed from mobile devices such as Apple's (Nasdaq: AAPL) iPad, iPhone, and iPod, as well asSony's (NYSE: SNE) Playstation 3, Microsoft's (Nasdaq: MSFT) Xbox 360, Roku, and special Sony and Samsung TVs. The ability to watch on TiVo (Nasdaq: TIVO) will be coming shortly.
Hulu CEO Jason Kilar noted that they would provide a credit to those who signed up earlier.
The company made the move to break away from the model of relying solely on advertising to generate revs. Kilar has said that “Hulu Plus is already accounting for a material percentage of Hulu’s overall business.”
Movie offerings from Hulu are rather limited to things that you might flip through if you happen to have a Monday morning off. "Black Sheep," "Air America," and "Drunken Master," are just some of the selections offered from a quick flip through, a far cry from feature films available on Netflix. However, Hulu's new price is more competitive with Netflix, which offers its subscription for $7.99 per month as well. The competition could really heat up if Hulu begins to negotiate better deals with movie studios.
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