Could Hulu Launch an Ad-Free Subscription Tier?

Hulu

HuluHulu at some point expects to introduce a subscription video plan without any advertising — and compete more aggressively with Netflix. But today, the Internet TV service doesn’t want to leave money on the table. Hulu generates $7.99 monthly per subscriber for the pay service and brings in about that much — in the “mid to high” $7 range — in advertising per Hulu Plus user, according to Andy Forssell, Hulu’s acting CEO and senior VP of content. Hulu Plus carries fewer ads than the content on Hulu.com (usually two 30-second spots per half-hour, versus three on the free site), but the ad revenue it gets from paying customers “allows us to buy more content,” said Forssell, speaking at the Goldman Sachs Communacopia conference in New York. That said, “Allowing people to pay more and not have advertising at all, I think that’s the right path long term,” he added.

Read the full story at Variety.

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