Hulu Price Increase: On-Demand Plans to Cost More

Hulu Announces Upcoming Price Adjustments

Following a price increase for its Live TV service last year, Hulu is preparing for another round of adjustments. Effective October 8, 2021, the cost of both Hulu’s on-demand plans – Hulu and Hulu (No Ads) – will be increased.

This price revision differs from the previous increase, which amounted to $10 per month for each Live TV plan. The upcoming adjustment will be a more modest $1.00.

Details of the Price Changes

Specifically, the ad-supported Hulu plan will rise from $5.99 to $6.99 monthly. Hulu (No Ads) will see its price increase from $11.99 to $12.99 per month. These changes will affect both current and new subscribers.

Hulu confirms that these October price increases will not impact its Live TV service offerings, nor will they affect any plans that bundle Hulu with Disney+.

The Disney+ Bundle Advantage

Currently, a bundle including Hulu, Disney+, and ESPN+ is available for $13.99 per month. This pricing structure may prove more appealing to consumers who are not specifically seeking Hulu’s live television service.

Subscriber Numbers and Growth

The majority of Hulu’s subscriber base utilizes its on-demand service. Disney’s fiscal third-quarter earnings, reported last month, revealed a 22% year-over-year growth in Hulu’s subscription video on-demand business, reaching 39.1 million subscribers.

In comparison, Hulu’s Live TV service, which also includes on-demand content, experienced a 9% growth, totaling 3.7 million subscribers. Hulu’s total subscriber count reached 42.8 million, representing a 21% increase year-over-year.

Growth Compared to Disney+

However, this growth rate is slower than that of Disney+. Disney+ saw over 100% year-over-year growth, increasing from 57.7 million subscribers in Q3 2020 to 116 million in Q3 2021.

Including ESPN+, Disney’s direct-to-consumer services collectively reached nearly 174 million subscribers by the end of the quarter.

ARPU Performance

Despite trailing Disney+ in overall subscriber numbers, Hulu currently leads in Average Monthly Revenue Per User (ARPU).

Disney reported a decline in overall ARPU from $4.62 to $4.16 in Q3, attributing this to a greater proportion of Disney+ Hotstar subscribers. Conversely, Hulu’s on-demand service saw ARPU increase from $11.39 to $13.15 year-over-year.

Hulu’s Live TV service (including SVOD) also experienced ARPU growth, rising from $68.11 to $84.09.

Content Offerings

Hulu’s on-demand service features a mix of licensed content and original programming. Recent additions include series such as “Nine Perfect Strangers,” “Only Murders in the Building,” and “Vacation Friends.”

Furthermore, as of September 1, the platform has expanded its library with thousands of Hotstar Specials and Bollywood films.