July 17--Hulu, the video streaming service where you can binge on "Seinfeld" and (unwittingly) commercials, is considering a tier to its service that would cut the ad spots.
The subscription VOD service currently offers a paid subscription option at a cost of $7.99 a month that gives subscribers access to a wider range of its content. Now Hulu is eyeing a second, ad-free option that would launch as early as this fall and be in the price range of $12 to $14, as the Wall Street Journal first reported.
Yes, that would hit the wall harder than its competitors. But it also provides a safety net for the service -- helping to ensure that the nearly 9 million subscribers already paying for Hulu's current version don't abandon ship.
The ad load has long been a complaint among some users disenchanted with having to endure breaks in their viewing. And Hulu has been considering an ad-free option for years. In fact, when folks took to social media to blast the ad breaks in the after-hours of "Seinfeld's" launch on the site, Hulu's Twitter account replied to some users that it hadn't ruled out an ad-free plan.
The streaming service, thus far, has relied on advertising revenue to help pay for the cost of expensive programming like "Seinfeld." For current shows that are available to stream on Hulu the day after airing, the streaming service splits the ad revenue with the TV networks that supply the shows.
Because Hulu is owned by some of the major media companies -- Walt Disney Co., NBCUniversal and Rupert Murdoch's 21st Century Fox -- they have structured the deals to also benefit those networks.
Hulu had no comment on the development.
