What you need to know
- Hulu is informing users of an impending price increase.
- Hulu's lower-cost tiers will increase in price by $1 each on October 8.
- Live TV and bundled plans are not affected by the increase.
Hulu subscribers are bracing for subscription prices to go up as the streaming platform starts sending out notices to viewers on Tuesday.
The prices of Hulu's standalone ad-supported and no-commercial tiers are each going up by $1 each to $6.99 and $12.99, respectively. The price increase will take effect on October 8, giving subscribers a month to prepare for the change.
According to Variety, Hulu's Live TV subscribers and those on the Disney+ bundle won't be affected by the price increase. We've reached out for additional details on the price increase, including why the platform has chosen to raise its price after dropping the price of its ad-supported tier back in 2019.
Variety notes that the move comes after Disney's recent earnings report which reported Hulu's first profit, suggesting Disney may want to keep up the momentum.
It may also be a way for the platform to push customers towards the Disney Bundle, which provides Disney+, ESPN, and Hulu at a lower price than they would each cost separately.
Disney CEO Bob Chapek noted in the company's recent earnings call that while churn for individual services is relatively low, "churn rates on the bundle are even lower," therefore the company would focus much of its marketing efforts on the bundle. This would also reinforce Disney's decision to discontinue Hotstar in the U.S. and roll the programs into the Disney Bundle.
Hulu is currently available on many of the best streaming devices, making it easily accessible for subscribers. However, the increase could potentially steer users away. That said, it still remains cheaper than the competition, including Netflix and HBO Max, the latter of which recently introduced a cheaper ad-supported tier for $10 a month.
If you're a Hulu subscriber, will the price increase drive you away from the platform, or do you plan to stick around? Disney and sports fans may want to consider making the switch to the Disney+ Bundle with Hulu and ESPN.