Recently, Hulu, a streaming subscription-based service, has lowered the price of its base subscription plan to $5.99, which is $2 less per month than the original $7.99. This change will take place starting February 26th. In the past, Hulu has offered its services for $5.99 but only temporarily.
This strategy of lowering the price is good, as it entices customers to utilize the service. Fortunately, there will not be an increase in the number of ads on the site due to the price drop. All of the other plans that Hulu offers will still be available for the same price. Not coincidentally, this announcement of the price drop is only a few days after Netflix announced their price increase.
There is a big difference between Netflix and Hulu. Netflix does not have any ads while Hulu does have ads in its base plan. Hulu is attempting to create a large cost difference so that customers think that paying less with ads is a better choice than paying more for no ads with Netflix.