As anyone who follows the cord cutting community knows there is constant debate about ad supported vs. paid choices with many strong opinions on both. Hulu was in a unique position of being both a paid and ad supported channel. Hulu recently gave it’s users the option of keeping ads (of which there was much grumbling), or paying an additional $4 a month to remove advertisements completely.
It looks like the majority chose to keep the ads according to a story by the Hollywood Reporter. The article quotes Hulu CEO Mike Hopkins who was speaking at the Paley International Council Summit in New York, “The vast majority of customers are voting with the limited-ads thing, which is what we thought would happen. And we think that’s really healthy and it’s a really positive step.”
He also explained the reasoning behind offering the ad free option, “Adding the commercial-free offering was part of a larger strategy to change the conversation about Hulu with consumers. When we looked at our brand metrics, our brand health, the advertising issue was really eating away at the foundation of the brand … it was too much of a negative.
We felt that giving consumers choice between a limited commercials plan and a no-commercials plan is another way to monetize the content. Consumers were going to give us a little bit more money for their time or they’ll save some money and give us their time to interrupt it for advertising. And this works … Almost overnight, the complaints about advertising on the limited-commercials plan plummeted.”
Do you subscribe to Hulu? Do you use the ad supported or ad free version? Comment below.