on the same day as the $10 increase in December. Hulu’s 2020 lineup actually shrank last year, removing Sinclair-owned regional sports networks in October.
This could mean that the latest price increase was made knowing a deal would soon be announced for ViacomCBS content. Given YouTube TV had to increase its fees by $15 after adding the same channels, a further increase could be expected in the coming months. The vMVPD business has proven to be tough to make a profit in. Operators have been willing to sit back and wait for their subscriber base to reach a scale that makes it profitable to deliver targeted ads, which carry a greater CPM rate.
The problem is that this takes time, and customers have had to be lured in with unsustainable deals where vMVPDs are spending more than their subscribers are paying. This is why Sony exited the market a year ago, and why AT&T TV Now has shed subscribers at an alarming rate as they sought to end promotional pricing.
Hulu is currently the market leader in the U.S., but this position would be at risk if prices rise again. One way around this would be to introduce service tiers, enhancing their current “Entertainment Add-On” offering.
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