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Hulu Drops The Price Of Its Basic Plan Just After Netflix Announced Rate Increases

Hulu may be dropping the price of its basic plan, but its ad-free streaming service and live TV prices will increase.

Posted on January 23, 2019, at 1:57 p.m. ET

AP / Dan Goodman

Hulu announced on Wednesday that it will drop the cost of its basic streaming plan β€” which is its most popular β€” to $5.99 a month from $7.99, a 25% decrease. But the cost of its live TV service will go up to $44.99 a month from $39.99, and its ad-free streaming option will remain $11.99 a month.

The changes, which go into effect Feb. 26, come after Netflix announced last week that its basic plan would increase by $1 to $8.99 per month, its high-definition plan with two simultaneous streams would go up by $2 to $12.99, and its premium plan with ultra HD quality and four simultaneous streams jumped by $2 to $15.99.

Netflix going with the price increase while Hulu just hit me with a price DECREASE Thank you Jesus!

Shout out to Hulu for dropping their price after Netflix just raised theirs. I love the petty war between these two streams lol.

With a $5.99 plan, Hulu stands to attract customers dumping Netflix over its price hikes as competition increases in the streaming space.

AT&T announced the launch of AT&T Watch in July which includes music and video streaming on a range of devices. Disney, which owns a stake in Hulu, is expected to roll out its own streaming service this year called Disney+. YouTube TV, which is owned by Alphabet, also announced on Wednesday the national expansion of its live TV streaming plan at $40 per month.