“What’s in this article:
- Hulu has maintained a consistent and compelling price point
- It offers an ever-growing catalog with next-day television
- A la carte bundling makes it a one-stop shop for premium channels”
Streaming services have changed the way many people interact with movies and TV. Virtually limitless content at the press of a button is an appealing offer compared to a traditional cable subscription, especially when direct-debut movies on platforms like HBO Max have changed perceptions of the theater experience in the wake of the coronavirus pandemic. Netflix is typically given credit for laying the foundation of streaming services as we know them, but Hulu, one of its biggest competitors, has maintained a more consistent voice and identity as the industry has changed, its influence shaping other streaming services as they debut. Here’s how.
Hulu Changed the Value Proposition of Streaming Services
Launching in 2010, Hulu has become one of the premiere OTT subscription services. While its name has never carried the same weight as Netflix, look closely and you’ll find that its fingerprints are far more prominent on the services that have launched since. Its tiered pricing structure, which offers ad-supported and ad-free versions, also allows room for bundles. Showtime, HBO, Cinemax, Live TV, and other premium add-ons can be piled together in one comprehensive package, making it a one-stop shop for everything from Game of Thrones to live sports.
The value of bundling on Hulu can’t be understated, as it’sthe purest example of how it conveys its worth to the average consumer. For $19.99, subscribers can get an ad-free version of Hulu, ESPN+, and Disney Plus, a trifecta that combines some of the most notable television shows on air with sports and Disney’s goliath catalog. It covers each base that one might have for the same cost as Netflix’s Premium subscription tier, and other services have taken notice. The peak of COVID’s shelter-in-place orders saw a spike in streaming service subscriptions and the launch of several new services. HBO Max, Peacock, and Paramount Plus debuted in the last two years, and each one supports a tiered pricing structure similar to Hulu’s.
Hulu hasn’t just established broader subscription tiers as the industry standard. Part of its brand identity has been how consistent its prices have remained since it launched. The cost of Hulu Live TV increased in 2021, but the base packages haven’t seen noticeable increases despite inflation and an expanded catalog. In fact, Hulu lowered its standard tier to $5.99 in 2019 after a Netflix price hike, a competitive move in a market that wasn’t as crowded as it is today. It was a marketing tactic that proved Hulu has chutzpah, and that packs some inherent appeal.
Setting a New Standard for Television Streaming
As streaming services rose to prominence, their convenience eviscerated brick and mortar rental shops, save for a single Blockbuster holdout and the occasional local video store. Now, the streaming industry seems primed to eliminate cable television. Hulu has been a big factor in this trend, as one of its defining characteristics has been its handling of broadcast TV. With some notable network exceptions (NBC, owner of its own streamer), Hulu gets new episodes of television shows the day after they premiere, another tactic that competing services have adopted.
The next-day strategy has intrinsically tied Hulu’s identity to television. Scroll through its menus, and you’ll find a smattering of shows placed front and center, with a heavier emphasis on personalized recommendations than what other services display. Even as production on new television series slowed down during the pandemic, the option to bundle Disney Plus and ESPN+ kept Hulu’s value apparent. Even if the main appeal was Disney Plus’ at-home movie debuts, Disney Plus is pitched as a $2.99 add-on for Hulu on its website — a no-brainer for many consumers considering the catalog includes Marvel, Pixar, Star Wars, and that hunk Jeff Goldblum.
No one could have predicted the pandemic, and by extension the catapulting effect it had on the streaming industry. Ultimately, the growth is a positive, but it also means there’s increased scrutiny for each streaming service — and a larger demand for new content as engaged users burn through what’s already there. But Hulu’s strategy of offering a rapidly increasing, highly relevant library, allowing a la carte bundling, and keeping a competitive base price point has carved it a clear identity and established it as a leading option for consumers.