Report: Hulu Plus may see big price cut

Consumers don't like the ads on Hulu Plus and there's little reason to pay for the service when Netflix offers more.

Doesn't appear Hulu Plus is seeing Netflix's kind of explosive subscriber growth.

Hulu CEO Jason Kilar Greg Sandoval/CNET

Managers of the video portal may be mulling a price cut from $9.95 to $4.95, according to a story in All Things Digital.

Hulu, the free video service operated by News Corp., Disney and NBC Universal, launched a separate premium service in June in an attempt to squeeze a little more revenue. After all, the company is planning to go public , according to a Reuters report two weeks ago. It's never been totally clear how profitable the free-to-consumers ad-based service is for the owners.

Regardless, complaints about Hulu Plus have been hard to ignore.

First, Hulu Plus doesn't have the same breath of selection as Netflix and the latter service is cheaper at $8.99. Then there are the ads. Some people are turned off by the fact that they are still required to sit through ads at Hulu Plus even though they pay a premium. Netflix doesn't double dip like that.

I don't think a price cut at Hulu will be enough. What Hulu needs is a better movie selection and a more consumer-conscious offering.

 

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