Hulu recently topped 5 million subscribers last year and now Hulu is making it even easier to sign up. Hulu newest IOS update allows you to subscribe via in their IOS app. This move allows Hulu to tap into a estimated 62 million handsets being used in the United States potentially large market for Hulu.
Hulu has long resisted allowing in app purchases because of Apples rules that demand 30% of the sale price. If every subscriber purchased their Hulu subscriptions through IOS it would mean a lost of $12 million dollars each month.
Netflix also dose not allow in app subscriptions to avoid giving over 30% of their subscription fees to Apple. A estimated $28.80 per subscriber per year of lost revenues. A number that would quickly make a dent in Netflix bottom line if all of Netflix’s roughly 30 million subscribers used IOS to subscribe.
Unlike Netflix Hulu brings it a large portion of their revenues from ads. Even if they make less from subscriptions on IOS they still get to show ads to new subscribers. Hulu is clearly hoping the increase in ad sales will off set the loss of subscription fees.
Hulu’s app historically has only been for subscribers now. The Android app was recently updated to include free clips and select shows in a move designed to give a taste of their service. This newest IOS version dose not include this feature yet.
The IOS app was refreshed with a all new look. Going from a horizontal layout to a vertical look that would be more friendly to iPhones and iPads. There are also two new side bars in the app. One side bar offers quick and easy navigation. The other side bar shows a history of previously watched shows. Making it easy to jump back to a show you are going through.