Hulu Ad Prices Eroding At Double-Digit Rates

As Disney takes control of subscription video-on-demand service Hulu, the services advertising rates appear to be languishing, according to a Research Intelligencer analysis of CPM data from SQAD’s MediaCosts database.

Hulu’s ad rates, which had been averaging about $49 for most of 2018, began eroding in the third quarter and fell 23% in the fourth quarter. 

By the first quarter of 2019, Hulu’s CPMs were trending down as much as 23%, with rates ranging from a low of $22 to a high of about $40. 

Year-over-year, SQAD data shows Hulu down about 18%. 

In fairness, Hulu has been throttling its ad-supported model and becoming more reliant on premium subscriptions, but if anything, the increased scarcity of ad inventory should be driving it up, not down.

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