Comment Hulu offers No Ads for a 50% fee markup (Score 2) 316
I dont know about Cancelling my Netflix, but I can tell you that I am one of the many, many Hulu subscribers that is willing to pay a 50% markup to my per month cost just to avoid Commercials ($11.99 vs $7.99).
Though in the case of Hulu it's not actually 100% Commercial Free. Certain shows start with a disclaimer that states "Due to streaming rights, the following is not included in our No Commercials plan and will play with a commercial before and after the show." But we are talking about seven very specific shows, and the commercial is usually 60 seconds or less (plus I always skip the one after the show). Per the current Hulu FAQ the exempt shows currently are: Grey’s Anatomy, Once Upon a Time, Marvel’s Agents of S.H.I.E.L.D., Scandal, Grimm, New Girl, and How To Get Away With Murder. Still a vast improvement overall and one I'm willing to pay the up-charge for.
If Netflix ever introduces commercials, I anticipate they'd include some sort of No Commercials Premium account as well. Though Hulu started with Commercials and added the "upgrade" later; Netflix will be going in the other direction which will cause more uproar. The only way I see them getting away with it would be to offer the Account with Commercials at a lower cost than current subscriptions (as a way to attract new customers) and keep the current subscription price for No Commercials (at least at first). Granted I could be wrong, there was not near the subscriber exodus I would have expected when they split the streaming and the DVD-By-Mail services to separate accounts, effectively doubling the cost subscribers had to pay to get the same level of service.
Though in the case of Hulu it's not actually 100% Commercial Free. Certain shows start with a disclaimer that states "Due to streaming rights, the following is not included in our No Commercials plan and will play with a commercial before and after the show." But we are talking about seven very specific shows, and the commercial is usually 60 seconds or less (plus I always skip the one after the show). Per the current Hulu FAQ the exempt shows currently are: Grey’s Anatomy, Once Upon a Time, Marvel’s Agents of S.H.I.E.L.D., Scandal, Grimm, New Girl, and How To Get Away With Murder. Still a vast improvement overall and one I'm willing to pay the up-charge for.
If Netflix ever introduces commercials, I anticipate they'd include some sort of No Commercials Premium account as well. Though Hulu started with Commercials and added the "upgrade" later; Netflix will be going in the other direction which will cause more uproar. The only way I see them getting away with it would be to offer the Account with Commercials at a lower cost than current subscriptions (as a way to attract new customers) and keep the current subscription price for No Commercials (at least at first). Granted I could be wrong, there was not near the subscriber exodus I would have expected when they split the streaming and the DVD-By-Mail services to separate accounts, effectively doubling the cost subscribers had to pay to get the same level of service.