UPDATED 14:14 EDT / NOVEMBER 17 2010

Hulu Cuts Prices to Remain in Competition with Apple, Google TV and Netflix

A new pricing plan for Hulu is afoot, as it cuts $2 or an equivalent in its monthly premium. This move was made in order to stay competitive within the industry that is becoming competitive for big players like Apple, Google TV and Netflix. Since they are all going after the same market, Hulu tries to keep up in good shape and form for customers.

Even after the official product launch, the price was seen to be an initiative to entice following. The online service’s chief executive officer, Jason Kilar did not entirely explain the objective of the price cut and why it came ahead of the actual introduction to the market. Well, obviously to create noise and pound on cheap costs ads to entice consumers.

According to Kilar, the following will be included in the service: One free week trials for all new subscribers, Two free weeks of Hulu Plus for both current subscribers and friends, 11 weeks ($20 worth) of free Hulu Plus with the purchase of a Sony BRAVIA connected TV or Blu-ray and One free month of Hulu Plus with the purchase of a Roku device until December 15, 2010.

With its expansion across multiple devices like game consoles and taking advantage of the tremendous and great reception of IT devices within the television industry, Hulu is looking to close the year strong and garner a $240 million revenue for 2010.  On the other hand, Netflix is also continuously upgrading, the most recent is its switch to level 3 communications for its CDN service. The organization is seen to be worth $2.2 billion by the end of the year.

These trends have yet to fully disrupt the cable market. But, the internet TV is slowly hurting the cable industry according to reports. Quoting from an article read in SiliconAngle about ComCast’s Xfinity TV for iPad, “Internet streaming video will work its way to cut into cable TV subscriptions—however, it might just push more users to Internet cable subscriptions as well.”

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