Hulu is another popular streaming service in the United States along with Netflix, Amazon Prime and some others, the company has hit the 20 million subscribers base last year, the company is believed to be the second most popular streaming service in the United States.
Last week, Hulu introduced new prices for its plans which cuts the prices of its regular plans and adds up in its live video services, the move came soon after Netflix announced to increase the prices of almost all its plans.
According to a recent survey conducted by Streaming Observer, 27% of Netflix users threatened to quit Netflix after the price hike, some industry professionals also believed that this might create opportunities for several competitors in the market. Hulu on the other hand, introduced reduced prices, many believe that Hulu’s move was in a response to Netflix’s price hike, however, that is not entirely true, RS-NEWS interviewed an industry professional Chris Brantner, CEO of Streaming observer in this regard who has provided some insights of current industry situation.
In responding to a question whether Hulu has reduced its prices in a response to Netflix price hikes Chris said, “While it’s nice timing for Hulu, I don’t think it’s in response to Netflix. I’d argue it’s more of an offensive move in advance of all the other players about to enter the streaming market. Disney, for example, will be releasing its Disney+ service soon, which is sure to offer Hulu, Netflix, and Amazon Prime some stiff competition. I’d also suggest it’s a response to services like Roku and Pluto TV that are growing their free on demand offerings as well.”
In another question: According to the survey 27% of US subscribers prefer to cancel Netflix subscription after the price hike, would Hulu be able to grab this market? He responded, “Sure, it could help. But you also have to remember that while people love to threaten to cancel, only a small percent actually will. Past statistics suggest that maybe 2% of those that threaten will actually go through with it. And we also know with streaming services, unlike cable, you can cancel and easily come back – there are no fees to cancel. So many people may cancel for a while only to return at a later date. I think it would still be hard for Hulu to get hands on Netflix customers”
In replying to the question would it be a good time for Hulu to introduce new prices? He said, “Yes, I think so. But again, I think what’s really important here is that Hulu is making moves in advance of increased competition. Hulu is already less popular than Netflix and Amazon Prime. So new services, like Disney+ could hurt them if they don’t make the right moves. I think the price drop is a good move and at a good time.”
When he was asked whether Netflix would be affected with the new price hikes he replied, “I don’t think it will affect Netflix too much. Netflix is the go-to streaming service right now for people with and without cable. I don’t see that changing. I’d guess that most people that subscribe to Hulu probably also subscribe to Netflix.”
Chris responding to the last question; whether Hulu is in a better market position now after several price changes in the market? Has it done enough by cutting down the prices? What it could do better? said, “Yes, I think so. Although, raising the price of the live service hurts. But it’s happened with other live services like Sling, Directv NOW, and fuboTV. The networks are just charging too much for these skinny bundle live streaming services to profit without raising prices. So I look for live streaming prices to continue rising over the next several years.”
Netflix is still very much popular in the streaming market and does not have any substantial threats ahead despite raising the prices, However, Hulu is facing increased competition from other services like Fubo TV, Directv NOW, and Sling. Hulu is currently making offensive moves in order to stay competitive in the market, their recent move will definitely help the company to improve its position.