Could Hulu lose ‘real money’ off live streaming service?

Hulu

Hulu is bringing us a live streaming service in the first quarter of next year, but specifics are still a little unclear.

We know that the service is going to include at least three of the four major broadcast networks, and likely will have similar cable networks offered by competitor Sling TV.

What we don’t know is price. Some analysts have pegged the service between $30 and $40 per month, which would be attractive for cord-cutters.

It may not be attractive for Hulu, though.

BTIG analysts Brandon Ross said the service would lose “real money” if the service is priced at $40 per month.

In Ross’ research note, as reported by Fierce Cable, he assumes that Hulu would also land CBS as part of its bundle.

“We are skeptical that the Hulu bundle will meaningfully impact the MCPD landscape from a subscriber standpoint,” he wrote. “We simply wonder whether the price/value will be strong enough to attract customers at $40, with much less content than the current larger bundles.”

Hulu is expected to offer a basic live streaming package at a lower price point that allows only one in-home device or mobile device. A more expensive option would allow streaming on multiple devices.

Andrew Dodson

Andrew Dodson is a journalist from Michigan who writes for MLive.com, the state's top online news source. Email him at andrewdodson@streamingobserver.com.
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