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Hulu to raise its Hulu + Live TV price by 22%, from $44.99/month to $54.99/month, for all subscribers starting on December 18

Todd Spangler / Variety :

Variety Todd Spangler

Context & Ripple Effects

Hulu's live TV service launched in 2017 promising a cable replacement under $40 a month (priced below $40 at launch), and it has climbed steadily since: in February it went to $44.99 even as Hulu cut its ad-supported on-demand plan to $5.99 to counter Netflix's price hikes.

The December jump to $54.99 lands just months after YouTube TV raised its own price to $50, meaning the two leading live-TV streamers are now racing each other upward rather than undercutting pay TV.

First-order effects

  • Every existing Hulu + Live TV subscriber pays $10 more per month from December 18, a 22% increase applied across the board rather than to new sign-ups only.
  • Hulu's live tier moves decisively past YouTube TV's $50, ceding the low-price position in virtual MVPD competition.

Second-order effects

  • YouTube TV and smaller rivals like Sling now face a choice between following Hulu's price umbrella and marketing against it, since the gap between streaming and cable bundles narrows.
  • Hulu gains headroom to discount or bundle its on-demand service alongside Live TV, echoing the split strategy it already ran this year of cheap VOD plus premium live.

Third-order effects

  • If both major vMVPDs keep repricing toward $55-plus, the category risks losing its core pitch as a cheaper cable substitute, pushing price-sensitive cord-cutters back to antennas, skinny on-demand plans, or traditional bundles.
  • Sustained carriage-cost-driven increases point the market toward consolidation via bundles — Disney already owns Hulu, so packaging live TV with Disney+ and ESPN+ becomes the retention lever once standalone pricing exhausts itself.

The trend: Live-TV streaming services are repricing upward toward legacy pay-TV levels as programming costs erode their original discount-to-cable proposition.

Discussion

  • @pkafka Peter Kafka on x
    Hoo boy Hulu. > 20 percent price hike, trying very hard to get me to cut the cord, for real. Makes digital antenna option for football look more plausible. https://twitter.com/...
  • @dcseifert @dcseifert on x
    the prices of streaming services will only continue to rise and probably faster than you expect. none of the launch pricing was sustainable. also, this will make cable (cable!) the more economic option for some https://www.theverge.com/...
  • @benbajarin Ben Bajarin on x
    Price hikes come when user growth slows so always quite telling is the state of one of these services. https://twitter.com/...
  • @pkafka Peter Kafka on x
    Also: Timely! Analyst Michael Nathanson has a deep dive about the state of live TV, the cable bundle and digital replacements teed up for the #codemedia audience Monday. https://events.recode.net/... https://twitter.com/...