Last month, Hulu revealed that they now have 26.8 million paid subscribers, up from 23 million they announced at the end of the year. Much of that growth has come from their ad-supported plan ($5.99) — which makes up about 60% of their subscribers according to CEO Randy Freer.
On the Recode Media Podcast with Peter Kafka, Hulu CEO Randy Freer shared that the company had never promoted the ad-free product ($11.99), because they “needed the economics associated with a dual revenue stream in subscription and ad revenue.” But, with consumers looking for ways to watch content without ads — similar to what they do on Netflix, that is about to change.
Hulu has hired Isiah Mustafa, the star of the Old Spice commercials, to make a spoof of his former deodorant campaign. In the 15-second spot promoting no ads — with an ad — it finishes “You’re probably thinking this is another Old Spice ad. This is a Hulu ad to tell you should get Hulu, with No Ads if you’re not into ads. I’m on an ad”