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.
quote: So you volunteer to pay $10 a month... ...to watch shows with the commercials... ...that are also broadcast in higher quality for free with commercials...
quote: As I stated above, HuluPlus is not targeted at people looking for commercial free experiences. It is targeted at people who want to be able to access it from elsewhere then their primary TV setup, or who are limited by their current DVR abilities.
quote: I feel like a lot of people are assuming $4.95/month would even come close to covering the advertising revenue. It would not, not even close. It would scare me to think how much TV watching would cost if it existed without advertising.
quote: Truth is, the Internet broke TV's stranglehold on people's free time. That's what's causing the decline in their revenue - web browsing, Facebook, online chat, online games, etc. Not piracy.