- Streaming video service Hulu has made many changes to its model over the past year -- shifting heavily toward its paid service and aggressively moving into original programming -- though its recent move, to create an ad-free tier, raised eyebrows as observers compared its $11.99/month level directly with competitors like Netflix.
- The tier is off to a good start, though, says CEO Mike Hopkins, who suggests that it's winning over people who wouldn't have considered Hulu otherwise: "So far, so good."
- Speaking at an IAB ad conference, Hopkins says internal data showed a "big chunk" of potential users wouldn't join due to the ads, while another set points to the ads as a reason for cancellation.
- Users "like advertising if it’s the right advertising at the right time,” Hopkins said, acknowledging the ad-free tier isn't a big group of subscribers at the moment.
- Along with the ad-free level, Hulu began selling a "limited" commercial tier at $7.99/month.
- Hulu -- co-owned by NBCUniversal (CMCSA +0.6%), Disney (DIS +0.9%) and Fox (FOXA +2.4%) -- has as its ongoing goals personalizing the product further and adding more programming (TV and film) to draw and keep users.
- Previously: Hulu launches higher-priced ad-free subscription tier (Sep. 02 2015)