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Will you subscribe at half the price?  (Source: Hulu)
Rumor suggests that $9.99 price was more than most beta users were willing to pay

Networks and movie rental firms see the writing on the wall; many consumers are starting to demand streaming content rather than having to watch via conventional TV or cable service. Netflix has a very robust streaming service and the company now considers itself a streaming firm that also mails DVDs.

Hulu announced this summer that it would be bringing a subscription service to users that would allow them to access more shows and movies and watch that content on devices like web connected TVs, the iPad, and the iPhone. When Hulu first talked the service up the price for a membership was pegged at $9.99 per month. Hulu has been testing the service with some lucky users for a few months now. 

According to 
AllThingsD sources are now saying that Hulu is considering a significant reduction in the price of its streaming service. That price reduction rumor, if true, would seem to suggest that beta users are not as interested in the service at nearly $10 per month as Hulu expected. The sources cited by AllThingsD claim that Hulu is looking at a new price of $4.95 per month.

If that rumor turns out to be true, the price should make the service much more appealing to users considering that for about the same $10 the subscription Hulu service was going to cost, Netflix users can get streaming and DVDs in the mail.



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The networks own hulu
By carigis on 10/22/2010 11:01:20 AM , Rating: 2
all of you who keep seperating the networks and hulu.. they are the same thing.. Hulu is owned by the networks, so they ARE getting paid when you pay a fee and have no commercials. Charging us for both is just double dipping. You make a deal about getting "extra" content.. no they are just witholding content they normally would give you so that you pay for it AND watch the commercials. gone are the days you find any shows with full season that you are not paying for. So you pay.. but still have to deal with commercials (which are steadily increasing until they get to network levels as well).




RE: The networks own hulu
By wordsworm on 10/22/2010 11:13:42 AM , Rating: 2
It's a bit like seeing ads in a newspaper that you pay for. However, imagine how expensive all that stuff would be without the ads.


RE: The networks own hulu
By guacamojo on 10/22/2010 11:18:57 AM , Rating: 2
Apt analogy. I just posted something similar.

The print world is full of examples. "Free" newspapers that are full of ads versus... well, maybe Consumer Reports, which doesn't accept advertising.


RE: The networks own hulu
By Richard875yh5 on 10/22/2010 1:22:25 PM , Rating: 3
Yes, but one would think, Consumer Reports, except bribes from Toyota!


RE: The networks own hulu
By guacamojo on 10/22/2010 2:37:01 PM , Rating: 2
quote:
...except bribes from Toyota!

Do you have a source for this claim?


RE: The networks own hulu
By maverick85wd on 10/23/2010 4:48:09 PM , Rating: 2
I think he was being facetious... You know, to make people laugh...


RE: The networks own hulu
By rennya on 10/24/2010 9:15:10 PM , Rating: 2
In the UK many of the newspapers there are free. It seems that newspapers in the US is still following the old model. Hmm...


RE: The networks own hulu
By guacamojo on 10/22/2010 11:16:53 AM , Rating: 3
quote:
Charging us for both is just double dipping.

Or is it subsidizing? I'd suspect that the $5 or $10 per month is not sufficient to keep them in the black. They probably subsidize their subscriptions with ad revenue.

I'd guess they're playing around with the balancing act: more commercials and less subscription, or vice versa.

It's not black-or-white, people. There's a whole sea of gray in between.


RE: The networks own hulu
By zephyrxero on 10/22/2010 11:36:08 AM , Rating: 2
On that note, I've always wondered how Netflix can afford to run their service for $9/mo...surely there will have to be some changes in the near future now that they've realized they stream more than they rent discs and they're getting current season shows from NBC in the near future?


RE: The networks own hulu
By Anoxanmore on 10/22/2010 12:25:59 PM , Rating: 2
Well six years ago I was paying $60/month for 8 DVD out a time with Netflix... now it is $11/12 or there about and unlimited number of DVDs out. I think it has to do with number of subscribers as that number has gone up quite a bit since then.

Then again, I'm also proud to say I've been a member of Netflix for nearly 7 yrs.(It'll be seven years in Jan of '11 :)


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