According to an article published by the Wall Street Journal, Hulu is considering adding an ad-free option in order to stay competitive with rivals like Netlfix and Amazon. The move is a considerable shift away from their current model of placing ads throughout a show despite consumers paying $7.99 for the Hulu Plus experience. Now, some don't mind the ads, but others consider them the bane of their existence.
The project code name is "NOAH" which is "No Ads Hulu"
The Wall Street article claims that the project code name is "NOAH" which is "No Ads Hulu". Insiders go on the claim that the price of the new service will be around $12 to $14 a month.This is welcomed news for many users, but Hulu is slightly different from Netflix and Amazon. Hulu is a joint venture between media giants 21st Century Fox, Walt DIsney Co, and Comcast Corp. These companies value the revenue generated by the ads on Hulu. Creating an environment where users expect zero ads could be tricky for these giant companies.
However, Hulu believes that the cheaper priced $7.99 tier will still be popular according to the WSJ article. Offering original content and securing new partnerships has been their current strategy to lure potential subscribers to their service. Hulu currently boasts around nine million subscribers and is on track to generate $1.5 billion this year alone. This is a vast difference to Netflix's 65 million world wide subscribers and 2014's $5.5 billion take.
Whether this rumor turns out to be real is hard to say, but I sure hope it is. There's nothing worse than seeing the same ad repeated ten times throughout a thirty minute episode of Parks and Recreation.