(Reuters) – Video streaming service Hulu said on Wednesday it will drop the price of its most popular monthly plan by $2 to $5.99, less than two weeks after bigger rival Netflix Inc hiked rates by as much 18 percent in the United States.
Hulu, which is owned by Disney, Twenty-First Century Fox, Comcast and AT&T, will continue with its ad-free version at $11.99 per month, the company said in a blog post.
In comparison, AT&T Inc’s HBO Now streaming service charges $14.99 per month, while Netflix’s popular standard plan is priced at $12.99 after the recent price hike.
The price drop comes as Hulu tries to fend off intensifying competition from players such as Amazon.com’s Prime Video service and Netflix. Streaming service providers are creating more original content and introducing attractive plans in a bid to win more subscribers.
The price change will come into effect from Feb. 26 for new subscribers, while the same will reflect for existing users in their subsequent billing cycle after Feb. 26.
Reporting by Vibhuti Sharma in Bengaluru; Editing by Shinjini Ganguli