Save your FREE seat for Streaming Media Connect this August. Register Now!

Hulu May Create an Ad-Free Tier, Reports the Wall Street Journal

Article Featured Image

In the subscription video-on-demand (SVOD) world, Hulu runs a distant second behind leader Netflix. One reason non-subscribers often cite for avoiding Hulu is that they don't want to pay for a video service and still have to sit through commercials. However, they may soon be able to experience Hulu commercial-free.

According to a news report in the Wall Street Journal, Hulu is considering adding an ad-free tier of service for customers willing to pay a little more. Hulu currently charges $7.99 per month, but would likely price the ad-free option at $12 to $14 per month. The new tier could debut as soon as this fall. The Journal cited "people familiar with the matter" as its source.

The proposal is codenamed NOAH, the Journal reports, which stands for No Ads Hulu.

How the new tier would be received is a matter of much speculation. While an ad-free tier could help Hulu compete against Netflix and Amazon Prime, it would be priced far higher than either, closer to the prices charged by premium movie services HBO and Showtime.

Hulu also has to consider how the advertising industry would react. By showing commercials, Hulu offers brands a way to reach desirable young cord-cutters who don't see broadcast TV commercials. In an advertising column, the Wall Street Journal points out that the high price for the ad-free tier suggests that Hulu doesn't want many subscribers to take the option.

Streaming Covers
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

Hulu Confirms Skinny Bundle Launch This Year at NewFront

Subscribers will soon be able to view live and on-demand content in one place; 70 percent of Hulu viewing now done on a TV screen.

Hulu: TV Network Brands Still Matter in the World of Online Video

Even when viewers watch programs from an SVOD service, they like to know which networks created the content.

Hulu Inks Multi-Year Deal With Epix, Netflix Focuses on Originals

Netflix has chosen to pass on blockbuster titles already available on other services, and instead will shop for exclusives.

Hulu's Move to DASH

The OTT service's Baptiste Coudurier talks about the hard work—and black magic—behind the smooth migration to MPEG-DASH, which now accounts for 75% of its traffic

Hulu Offers Showtime to Subscribers, at a $2/Month Discount

The SVOD service will subsidize the cost of Showtime subscriptions in the hopes of building its member base and challenging Netflix.

Hulu Considering Reducing Ads for Subscribers: New York Post

The number two subscription video-on-demand service might cut its heavy video ad load to improve the viewing experience.