Hulu Considers Slashing Hulu Plus To $5

In: Communication|Computer|Internet|Networks|Rumors|Software|Television|Video

26 Oct 2010

Hulu Considers Slashing 'Hulu Plus' To 5.00 - After people realize it offers a crappy value proposition

Back in June Hulu announced Hulu Plus, a $10 a month broadband video subscription service that is supposed to allow users to access entire back catalogs of TV shows above and beyond what’s available on free Hulu, albeit still with commercials. In August, a scathing study showed that the service really wasn’t worth much with 88% of the content already available for free via normal Hulu.

After significant criticism, Hulu is now considering reducing Hulu Plus to $5 a month according to Peter Kafka at AllThingsD:

Hulu is considering cutting the price of Hulu Plus, the subscription service it began testing in June, sources tell me. I’m told the video site is talking about slashing its $9.95 per-month fee in half, to $4.95… a price cut would indicate that consumers haven’t bought in to the pitch. That shouldn’t be a shock, considering the other video options that consumers have, and the limits that Hulu’s content providers have placed on the service.

As we noted earlier this week, Hulu’s made it very clear they don’t want to truly disrupt and reach their full Internet video potential for fear of upsetting their broadcast owners and that’s before they become part of an even larger Comcast media empire. Like other recent decisions, charging and paywalling first and considering whether you’re offering real value later falls right in line with typical broadcast/cable thinking.

It’s not clear if $5 a month would be any more compelling, though if you act now, Hulu will buckle to the most ridiculous demands of broadcasters at no additional cost.

Link to the original article…

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