The adjustment is expected to bring more users to the platform, which in turn will help grow Hulu’s ad revenues. “In such a competitive video streaming landscape, Hulu cutting prices for its low-tier ad-supported streaming subscription will almost certainly increase viewership, attracting those who had been on the fence about having the entry-level Hulu option,” said Monica Peart, senior director of forecasting at eMarketer. Viewers generally respond favorably to advertisements when compensated. More than half (56%) of US video viewers don’t mind seeing ads if they’re paying a reduced fee, a study by the Interactive Advertising Bureau (IAB) found.
Source: Hulu’s Price Cut Will Boost Ad Revenues – eMarketer Trends, Forecasts & Statistics