Big news #1: Hulu is raising prices on its live TV service while lowering the price on the streaming video-on-demand offering.
Price change for Hulu Live (% change):
1) Old — $39.99
2) New — $44.99 (↑ 13%)
Price change for Hulu streaming video-on-demand (SVOD) service (% change):
1) Old — $7.99
2) New — $5.99 (↓ 25%)
Price change for Netflix standard plan (% change):
1) Old — $10.99
2) New — $12.99 (↑ 18%)
Why this matters: First, it is important to remember that this Hulu package has ads compared to a Netflix offering that does not. Second, Hulu is probably seeing the same math as NBCUniversal where addressable video ads are extremely valuable. For example, if Hulu can generate $5/user/monthfrom advertising, then dropping the price by $2 makes total sense if they can grow their user base.