Cablevision Will Now Resell Hulu Service
Broadband cable provider Cablevision announced today that it will begin reselling the Hulu Plus subscription service to its customers including several bundles that will include Hulu. Cablevision is the first pay TV provider to make this move and the market is watching. Cablevision is also the first service to sell HBO NOW as a stand-alone subscription targeting internet customers who do not have a TV subscription plan.
Cablevision’s Optimum Online customers will be the first targeted with the new Hulu subscription. These customers currently pay for internet service without a TV package. This service also provides access to over one million WiFi hotspots.
Currently Hulu Plus is available for $7.99 per month directly but Cablevision has yet to release its pricing structure as a reseller. The company has also not released the date at which it will make the new service available.
Cablevision’s Hulu Plus bundle will contain the same streaming catalog that is made available to any premium Hulu customer however they will not be required to sign up directly with Hulu. The convenience will be a single bill for the internet service and Hulu subscription. This will not only increase the number of potential Hulu customers but should also help Cablevision retain customers in the long term as their subs are essentially one account. In order to sever your Cablevision account you would also drop Hulu or HBO GO.
This type of offer is being referred to as “cord cutter” bundles, and Cablevision has really started something here. Verizon tried doing something similar offering service and then several individual online subscriptions. This lead to a law suit from ESPN as they were removed from the core lineup of services. Dish Network is also now offering several similar services.
Senior Vice President of Distribution at Hulu Tim Connolly said, “At Hulu we believe users should have the ability to consume their favorite content, when, where and how they want. Even with the rapid growth in streaming, there is a huge audience that consumes television through their cable provider, and we want to be there for them too.”
Cablevision is the first on the block with Hulu and it is clear that both companies are clearly looking for new routes to bring in customers. Hulu Plus has over 6 million subscribers with Netflix measuring in at 60 million and Amazon Prime with 40 to 50 million.