Hulu Starts Up Ad-Free Service

Premium digital video platform Hulu will join the ranks of subscription video on demand competitor Netflix, in providing an advertising-free supported service.

The new service will cost $11.99 a month, more than the lowest $8-a-month fee that Netflix charges for its advertising-free SVOD service.

Hulu is in partnership with Walt Disney Co., 21st Century Fox and Comcast’s NBCUniversal. It has a library of 170 TV series.

Hulu's advertising-free service will be $4 more than its regular limited-advertising subscription service, which goes for $7.99 a month. For that service, consumers get current and full-season TV shows.

Hulu says current subscribers can maintain their existing subscription, but have the choice to switch to the commercial-free option at any time for an additional $4 per month.



For viewers who choose to watch content with limited commercials, Hulu says it will continue to show fewer commercials than scheduled television.

But due to specific network streaming TV rights, Hulu says it can’t offer no-commercials on all broadcast network shows: Shows such as ABC’s “Grey’s Anatomy” and “Once Upon A Time,” “Fox’s “New Girl” and NBC’’s “Grimm” will also air with a pre-roll and post-roll commercial before and after each episode.

Most recently, Hulu announced a big multiyear agreement with Epix bringing big theatrical films from Lionsgate, MGM and Paramount to Hulu for the first time. The package had been with Netflix for some time.

The 7-year-old Hulu has grown to nearly 9 million U.S. subscribers, a 50% hike year-over-year.

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