According to a report by The Information, Hulu is considering offering a cheaper bundle by shifting some entertainment content from live to on-demand.
While the company does not expect the new bundle to reduce licensing costs, the switch to on-demand entertainment would help them save on technology costs.
The new bundle would consist mostly of live sports and news, with entertainment content being accessed similar to they way subscribers of Hulu’s SVOD service would access them.
While concrete details of the new service are sparse, Hulu’s CEO Randy Freer said he could envision a sports bundle, news bundle, and premium bundle (HBO, Showtime, & Starz).
The change won’t be easy, nor immediate. Hulu will have to convince networks to switch to the new model - in spite of fears of being dropped by cable and satellite services.