What Happened
Hulu is set to end its ad-supported TV service as it aims to push for paid subscriptions. The free-to-watch content will be distributed via Yahoo as part of an expanded deal it inked with Yahoo for the impending launch of streaming service Yahoo View, for which Yahoo will be using Hulu’s video player and running ads sold by Hulu’s sales team. Hulu, which recently added Time Warner as a minority shareholder, has amassed 12 million subscribers and launched a completely ad-free subscription tier last fall.
Why Brands Should Care
As viewers get increasingly accustomed to the ad-free experience that popular OTT services such as Netflix and Amazon Prime Video provide, it is understandable that Hulu is revising their content structure and focusing on building its paid subscription service instead. Soon, Hulu will most likely carry no ads in its SVOD service. (It will most likely still carry ads in its upcoming Live TV service.) But for advertisers, the ad inventory that Hulu provided will simply move to Yahoo’s new streaming service.
For more information on how brands can effectively reach consumers who are actively choosing to avoid ads, please check out the Ad Avoidance section of our Outlook 2016.
Source: The Hollywood Reporter
