The video streaming company is exploring plans to launch an ad-free service that's aimed at taking on Netflix, according to the Wall Street Journal. Fred Katayama reports.
You may be able to watch that Seinfeld rerun without those pesky ads. The Wall Street Journal reports that Hulu is considering plans for a new ad-free service. Such a move is clearly aimed at taking on industry leader Netflix. Hulu currently offers two service tiers: one that's free, the other a $7.99 a month subscription. The paid tier offers more content such as the whole season's worth of shows for binge viewers, but it still forces subscribers to watch ads. Rival services such as Netflix and Amazon Prime Instant Video strip out the ads. Hulu's premium service currently costs the same $7.99 a month as Netflix in the U.S., but the ad-free one it's exploring reportedly will cost around $12 to $14. The big challenge for Hulu: not cannibalizing its ad-supported business. Hulu's premium service provides the company something Netflix and Amazon do not: dual stream revenue from subscriptions and ads. Hulu has been adding content to make itself more competitive. But it still has just 9 million subscribers, a fraction of the more than 65 subscribers that Netflix just revealed this week. Shares of Netflix and Amazon brushing off Hulu's plans, rising in early trading.