Hulu Announce Price Drop To Challenge Netflix’s Increase

Hulu To Drop Prices!

Although the Hulu service may not be particularly well known (or indeed available) in Europe, for American consumers it provides about the best (and only) alternative to Netflix. As such, they have often found themselves in competition with Hulu often being considered the better service, despite not having figures as impressive as Netflix.

With Netflix recently announcing a price increase, however, it seems that one of their largest competitors is looking to try and capitalize on it.

In a report via Polygon, Hulu has announced that it will be dropping the price of its basic subscription service. This increase is only to the basic ‘ad-supported’ tier, but prices will drop from $7.99 a month to $5.99

A Good But Logical Decision

With the decrease in their basic price, Hulu is clearly hoping to capitalize on customers. Specifically, those who have left (or are considering leaving) Netflix due to their price increase. While this is generally good marketing, I do have a little sympathy for Netflix.

Unlike Netflix, Hulu does not (at least to my knowledge) produce any independent programs. As such, without this expense, they are in a position to be able to ‘suck up’ lowering the price without any notable impact. If they manage to up the subscription numbers significantly though, it could prove to be a very shrewd move.

What do you think? Is this a good move for the company? – Let us know in the comments!