Not long after Netflix raised prices for all subscribers in the United States, Hulu has decided to cut the price of its base subscription plan. It currently costs $7.99 per month for the ad-supported plan and Hulu has decided to cut its price to $5.99 per month starting February 26th.

This isn’t a new price point for this basic plan. Hulu has previously brought the price down to this level during promotions but this time around, it’s doing this permanently. Hulu may see substantial value in bringing the price down to this level permanently with respect to driving subscriber growth for the service.

Since this is an ad-supported plan, there would be an expectation that Hulu will bump up the advertisements to make up for the lost revenue due to the lower price. That’s not going to be the case. Hulu says that there will not be an increase in ad volume.

With regards to its other plans, the “no commercials” plan remains at $11.99 per month. There’s also no change for the $12.99 per month Hulu and Spotify bundle subscription for which the billing is handled by Spotify.

Netflix raised prices across all of its tiers a few days ago and Hulu is understandably capitalizing on that with this move. One major difference remains, though, there are no ads on any of Netflix’s tiers.

Filed in Web. Read more about and . Source: cnbc

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