Hulu’s Ad Revenue Expected to Rise After its Recent Price Cut

We shared news about Hulu’s price cut back in February, and a partnership with Spotify to offer both services for a reduced price earlier this month. Those changes have helped to increase Hulu’s subscriber count and with more subscribers comes more ad dollars.

According to a forecast from eMarketer, Hulu’s ad revenue is expected to increase by 22.7% from 2019 to 2020. With that increase, the ad revenue will reach above $2 billion.

The price decrease was a strategic move from the company, especially coming right after the price hike from Netflix. Monica Peart, senior director of forecasting at eMarketer commented that “In such a competitive video streaming landscape, Hulu cutting prices for its low-tier ad-supported streaming subscription will almost certainly increase viewership, attracting those who had been on the fence about having the entry-level Hulu option.”

Surveys show that viewers are much more likely to have a more positive attitude about ads on a streaming service if they feel like they’re getting a good deal. In an eMarketer survey, 56% of respondents said they don’t mind seeing ads if they’re paying a reduced fee.

One change we’re likely to see soon is a static ad when TV is paused. While viewers still prefer services that are completely ad-free, Hulu is counting on its lower price point to continue drawing in subscribers to increase ad revenue.

Did you know we have a YouTube Channel? Every week we have a live Cord Cutting Q&A, and weekly Cord Cutting recap shows exclusively on our YouTube Channel!

Please follow us on Facebook and Twitter for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.