Hulu drops price of its entry-level plan

Hulu's special offer for the limited-commercials plan is available through January 9, 2018, only to new or returning Hulu subs.

The move comes, coincidentally, as Netflix last week raised prices on its standard plan (to $10.99 per month) and the premium four-stream plan (to $13.99 per month) in the U.S. The Netflix "basic" one-stream, non-HD plan remains unchanged at $7.99.

Hulu has rolled out a new pricing promotion that lowers the cost for its entry-level tier that includes limited commercials from $7.99 per month to $5.99 for the first year of service.

After the first year at $5.99 per month, Hulu subscribers will be bumped up to $7.99.

A Hulu rep said the company's new promo is meant to draft off the fall 2017 TV season.

As Netflix continues to churn out loads of original content, Hulu is still looking to stay competitive in that department - but The Handmaid's Tale is now their biggest hit. In addition to all of the original content, Hulu has also licensed rights to popular shows both old and new, such as How I Met Your Mother, Glee, M*A*S*H, 30 Rock, Black-ish and the shows from ABC's TGIF lineup in the 1990s.

Last month, Hulu announced that it had budgeted around $2.5 billion for original programming in 2017.

Separately, earlier last month Hulu and Spotify rolled out a bundle priced at $4.99 per month for college students in the USA that includes access to Spotify Premium and Hulu's limited-commercials SVOD service.

Correction, 3:26PM ET: An earlier version of this story stated that the price drop came after Netflix had increased its prices, but Hulu actually soft-launched its price drop at the end of September.

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