Roger Fingas
Streaming video service Hulu is reportedly exploring the possibility of a completely ad-free tier that could launch as soon as this fall, and cost about $12 to $14 a month.
The project is operating under the codename "NOAH," short for "No Ads Hulu," sources told The Wall Street Journal. The service's owners are still said to support the idea of having an ad-supported version, and are allegedly working to make ads more relevant to subscribers. Hulu is a joint venture by Fox, Disney, and Comcast.
Subscribers currently have access to two tiers. The first offers a basic amount of movies and TV shows for free, but unlimited access — and any viewing on a TV, phone, or tablet — costs $8 per month. Both levels have advertising, even though Hulu's main competition, Netflix, has a similar monthly fee and no ads.
Hulu's subscriber base is now 9 million, up 3 million from 2014. The service has been dwarfed by Netflix however, which has over 65 million subscribers worldwide. Hulu is only available in the U.S. and some distant American military bases.
TV industry executives are allegedly worried about the impact of ad-free services because they're not only attracting viewers and hurting ratings, but training people to expect TV shows without ads. This has drawn channel owners to Hulu, and the Journal suggests that the high price of the proposed NOAH tier is a way of keeping ad traffic going.
Nevertheless, an ad-free version of Hulu could present a challenge not just to Netflix but the sudden influx of Internet-only live TV services, such as HBO Now, Sling TV, PlayStation Vue, and Apple's upcoming service, which could also debut this fall. While Hulu doesn't offer live content, its emphasis on ongoing TV shows — including many not on Netflix — could help make it a viable alternative.
William Gallagher
Andrew Orr
Christine McKee
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Wesley Hilliard
AppleInsider Staff
Amber Neely
50 Comments
I'd pay for that in a heartbeat. I HATE ads. I hate ads on my TV. I hate ads on my radio. I hate ads on my computer. I had ads on my phone. I hate print ads. I HATE ADS! I can't remember the last time I bought anything I saw advertised.
The way I see it, if I'm paying you money for content, I expect there not to be any ads. Free over-the-air transmissions? Fine, put in ads. This is the main reason I don't have cable TV. I'm not going to pay you for the privilege of sitting through ads. I'm honestly surprised so many people signed up for this at all. If you're ok with the ads, you probably have cable so you're used to it. But if you have cable, why do you need Hulu? Aren't these online services meant for cord-cutters?
[quote name="zroger73" url="/t/187251/hulu-considering-ad-free-tier-to-better-compete-with-netflix-other-video-services#post_2749327"]I'd pay for that in a heartbeat. I HATE ads. I hate ads on my TV. I hate ads on my radio. I hate ads on my computer. I had ads on my phone. I hate print ads. I HATE ADS! I can't remember the last time I bought anything I saw advertised. [/quote][quote name="sog35" url="/t/187251/hulu-considering-ad-free-tier-to-better-compete-with-netflix-other-video-services#post_2749330"]I HATE ADS. willing to pay money not to see crap. [/quote] It's amazing Apple doesn't understand that it pisses people off when they have to see ads and yet they still waste $10's of millions on them. /s
one word: DVR
record and skip all ads.
Yeah that's not happening. Having to press fast forward, then oops too far, go back, ok close enough, 4 seconds of the last ad. Ok another break, fast forward, oops too far, go back..
Yeah, no. That's almost worse than just sitting through them. My point was I shouldn't have to deal with the ads at all if I'm paying for it. Maybe I'm alone in this opinion, but I'm certainly telling them how I feel with my wallet.
The iTunes TV shows for purchase don't have ads.