On paper, the media streaming service Hulu is a great idea, either watch selected shows for free or pay a $7.99 (£5.12) fee to view an expanded array of content. But the problem lies with United States based consumers who pay a subscription but are still subjected to commercials within the lowest tier package, which I think is a cheek considering if you pay a price, you should not have to view ads as well.
Recent reports have suggested that Hulu is planning to respond to this by offering consumers a new subscription package which wipes out adverts altogether. There is speculation that Hulu would be willing to market these new tiers at between $12 and $14 dollars (£7 – £9) approx.
This on paper sounds an improvement, but in order for the rumoured change to be successful, the media streaming service will need to re-think an additional subscription tier by the name of “Showtime”. Which for an additional $8.99 dollars (£5.76) a month on top of the current subscription, consumers can watch a larger library of content which is commercial free.
On top of this there is also another problem, technically, Hulu is only available in the US, Yes we all know where we are going here so I won’t say. So, if Hulu wishes to grow its business model, it will need to offer content to consumers in more countries legally. I do feel Hulu has been dwarfed by Netflix in terms of territories and also notoriety with the most logical outcome being one subscription price for all content.
Will these possible changes be a turn off for consumers? Well here’s the killer, Hulu is owned by many of the TV companies which include-21st Century Fox, Comcast, and the Walt Disney Company. These conglomerates have a vested interest in marketing the product with commercials in order to garner increased revenue. If more people migrate to ad free alternatives and are still able to watch the latest shows at the expense of the traditional TV, what incentive is there for Hulu to move completely away from adverts?
Now, as I write this, I am not condoning or supporting piracy in any way, the facts are this, unless Hulu changes and implements a service which is completely ad free. How will Hulu market the product at new subscribers when said consumers are able to watch the same content, which is available ad free to download illegally or to view on other legal services?
Companies need to drastically re-educate themselves on the effectiveness of adverts in the Internet generation; otherwise there will be a steep decline in revenue as streaming services becomes the prime destination for consumer viewing habits.
Thank you Gamespot for providing us with this information
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