Woo Hoo! Hulu's Working on a Premium Tier With No Ads. People familiar with the plan call it 'Project NOAH,' which stands for NO Ads Hulu.

By Daniel Cooper

entrepreneur daily

This story originally appeared on Engadget

Would you kick in a few extra bucks to watch Hulu without those grating pre-roll ads, because it might become an option pretty soon. Anonymous tipsters have told the Wall Street Journal that the company is working on "Project NOAH," which stands for "NO Ads Hulu," a new pricing tier that ditches ads outright.

The people familiar with the matter haven't gone into specifics, but suggest that the offering could be priced between $12 and $14 a month, a fairly big leap from the $7.99 a regular subscription costs. Then again, considering that the Showtime add-on is a further $8.99 a month, we could easily imagine a premium Hulu package that went for a round $20.

The move is designed to Hulu better compete with its rivals, Netflix and Amazon Prime, both of which are proudly free of commercials. When rumors surfaced that Netflix was even considering adding commercials, there was plenty of uproar and the company was quick to issue a strong denial. Hulu could also do with raking in a little more cash since it splashed out the better part of $180 million for the streaming rights to Seinfeld.

The paper also reports that there's some resistance to the ad-free tier coming from Hulu's corporate parents. It's suggested that these media companies feel resentful to Netflix for making people expect to binge TV shows without having to pause for a message from a sponsor. That's a fact that puts plenty of executive noses out of joint, since they feel that ads remain a key component of the TV landscape (because: money).

As a sop, it's believed that Hulu will use its audience data to target relevant products to people since, you know, you only resent paying for the privilege of watching an advert if it's for something you're not likely to buy.

After training to be an intellectual property lawyer, Dan Cooper abandoned a promising career in financial services to sit at home and play with gadgets. He now serves as Engadget's associate European editor.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

Former Pediatrics Professor Donates $1 Billion, Makes Albert Einstein College of Medicine Tuition-Free

Dr. Ruth Gottesman's husband left her $1 billion in Berkshire Hathaway stock with the following instructions: "Do whatever you think is right with it."

Starting a Business

Long-Lost Sisters Who Built the Largest Black-Owned Wine Company in the U.S. Reveal How to Break Into a Notoriously Tough Industry

Andréa and Robin McBride followed their shared love of wine into business — but it hasn't always been easy.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'Next Tesla' Electric Car Startups Hit Speed Bump: 'Investors Want To See Demand'

Electric vehicle companies large and small, from Ford to Tesla to Rivian, are dealing with cooler-than-expected demand for EVs.