Did Hulu overestimate how much consumers would be willing to pay for its subscription service? Maybe so, and, as a result, the joint venture is considering cutting the price of Hulu Plus, reports
MediaMemo. Sources tell the blog -- owned by News Corp., which partly owns Hulu -- that the video site might
cut its $9.95 per-month fee in half to $4.95.
"Hulu Plus was supposed to be the video site's strategy to generate a second revenue stream to complement the free, ad-supported site," MediaMemo
writes. "But a price cut would indicate that consumers haven't bought in to the pitch." Adds MediaMemo: "That shouldn't be a shock, considering the other video options that consumers have, and the
limits that Hulu's content providers have placed on the service." By contrast, for $8.99 a month, Netflix subscribers get access to a cavernous catalog of movies and TV shows delivered on DVD, or
directly to their PCs, phones, or iPads.
Read the whole story at MediaMemo »