Hulu is a leading subscription-based streaming service that bridges the gap between traditional television and modern streaming. Known for its diverse content library and flexible pricing models, Hulu caters to millions of viewers looking for on-demand entertainment and live TV options. Here’s a deep dive into how does Hulu work and makes money.
What is Hulu?
Hulu is a premium streaming service over the internet-based TV streaming service. It allows users to stream movies, TV shows, documentaries, and much more on a huge range of Internet-connected devices.
Hulu was launched on October 29, 2007, as a joint venture among Facebook, AOL, MSN, Comcast, Yahoo, and Myspace! This streaming platform mainly focused on TV shows at the initial level rather than focusing on movies or any other kind of video content.
Later, to provide entertainers with fresh and engaging content company has successfully partnered with most of the USA’s cable TV channels such as Fox, ABC, NBC, CNBC, and many others.
It also partnered with national and local channels like Disney Channel, National Geographic, Fox, and many others to provide fresh content to viewers of all ages and tastes. It provides the live TV experience to many viewers worldwide on the internet that also without the need to install cable TV.
Check the List of Advance Features Which Hulu Users are Provided with:
- It provides users with a large list of on-demand TV shows and movies to watch.
- Users are allowed to explore almost all the TV episodes from all the TV channels just the day after they have been aired.
- Live TV experience from broadcast networks in more than 200 USA markets.
- Leverage the use of a Cloud DVR.
- STARZ, HBO, Cinemax, SHOWTIME, and many other exclusive add-ons stream exclusives and provide users with great entertainment streaming shows such as Shameless, Game of Thrones, and many others.
How Does Hulu Work?
Wondering how Hulu work. Let’s break it down here!
Hulu was primarily started with an ad-supported business model where viewers could stream TV shows free of charge, but they needed to watch advertisements completely that interrupted the stream.
Hulu’s previous model was just similar to the present YouTube business model. Later in 2010, the company introduced its paid subscription service for its users to compete with the likes of Netflix.
The paid subscription was launched at $9.99 per month initially but later was lowered to $7.99. But this paid subscription was not ad-free, it also contained as many ads similar to the free version, but users were provided with a huge array of choices to find their shows matching their taste.
Hulu is one of the most popular on-demand streaming platforms, offering a mix of TV shows, movies, and live TV options. Whether you’re a cord-cutter looking for an alternative to cable or just want access to your favorite series, Hulu is a versatile choice. Here’s a detailed breakdown of how Hulu work and why it’s become a favorite among streamers.
Subscription-based Streaming
The Walt Disney Company reported that Hulu had more than 52 million paid subscribers in Q4 2024, the number has increased from 48 million which was found in the previous fiscal year.
Source: (Statista)
Hulu operates on a subscription model, giving users access to a vast library of content for a monthly fee. There are several tiers to choose from:
Hulu (With Ads): Priced at $7.99/month, it offers access to the full content library with occasional ads.
Streaming Content (No Ads): For $17.99/month, enjoy an uninterrupted streaming experience.
Hulu + Live TV: The plan starts at $82.99/month (with Disney+ (With Ads) and ESPN+ (With Ads).
Content Library
Hulu offers over 70,000 episodes of TV shows and movies, one of the largest on-demand catalogs in the streaming market, catering to all tastes. Here’s what you can expect:
On-Demand TV Shows: Watch popular TV series like Grey’s Anatomy, Brooklyn Nine-Nine, and next-day episodes of current shows from major networks like ABC, Fox, and NBC.
Exclusive Hulu Originals: From Emmy-winning The Handmaid’s Tale to hit comedies like Only Murders in the Building, Hulu’s Originals are a major draw.
Movies & Documentaries: Stream a mix of Hollywood blockbusters, indie films, and thought-provoking documentaries.
Live TV Options: Catch live sports, breaking news, and events through channels like ESPN, CNN, and ABC.
Personalization: Tailored for You
Hulu ensures every user gets a tailored streaming experience through these features:
Personalized Recommendations: Its advanced algorithm suggests shows based on your viewing habits.
Profiles: Create up to 6 individual profiles per account for personalized watchlists and recommendations.
Watchlist: Save content to watch later, and Hulu will even remind you of new episodes or upcoming movies.
Device Compatibility
Hulu reports that 80% of its users stream via mobile devices, highlighting its video streaming app’s importance in the experience. Hulu is designed for flexibility, so you can stream on almost any device, including:
- Smart TVs
- Smartphones (iOS and Android)
- Streaming sticks (Roku, Amazon Fire Stick, Chromecast)
- Game consoles (PlayStation, Xbox)
- Web browsers
You can also create up to 6 user profiles per account, ensuring personalized recommendations for each viewer. The platform enables users to stream in HD and 4K Ultra HD (for select titles) with compatible devices.
Streaming Features
Hulu offers a range of user-friendly features, including:
Simultaneous Streams: Stream on 2 devices at once (upgrade to Unlimited Screens with Live TV plans).
Offline Viewing: Available with the Hulu (No Ads) plan, letting you download select content to watch without an internet connection.
DVR Storage: Live TV plans include 50 hours of cloud DVR (upgradeable to 200 hours).
How Hulu Stands Out?
Hulu subscribers spend an average of 3 hours per day on the platform, higher than the industry average of 2.5 hours/day for other streamers.
Hulu is unique because it blends the benefits of live TV with the affordability of on-demand streaming. Its partnerships with major networks allow for next-day streaming of current shows, a feature unavailable on many competitors like Netflix or Disney+.
Is Hulu Right for You?
Hulu is perfect for:
- Fans of current TV series who don’t want to wait for full seasons to hit other platforms.
- Cord-cutters seeking an affordable live TV alternative.
- Families, thanks to customizable profiles and a diverse content library.
Hulu Business Model: How Does it Work?
An American subscription streaming media service owned by Disney Streaming operates on a hybrid business model that combines subscription revenue with advertising income to maximize profitability while offering flexible viewing options to its audience. Hulu business model allows it to work and cater diverse range of viewers, from budget-conscious users to those who prefer premium, ad-free content.
Let’s dive into the core components of a Hulu business model right here:
Content Strategy
Hulu balances licensed content with its own original programming, such as The Handmaid’s Tale, Only Murders in the Building, and The Bear. This dual approach ensures:
- A mix of fresh, exclusive offerings to attract new subscribers.
- Cost efficiency by supplementing original productions with licensed TV shows and movies.
Personalization and Data Analytics
Hulu uses advanced algorithms to analyze user behavior and viewing patterns. This enables:
- Personalized recommendations that improve user satisfaction.
- Tailored advertisements for better targeting and increased ad revenue.
Multi-Device Compatibility
Hulu ensures accessibility across multiple platforms, including:
- Smart TVs, smartphones, tablets, laptops, streaming devices, and gaming consoles.
- This universal compatibility enhances convenience and expands the user base.
Competitive Advantages
Hulu’s business model sets it apart in the competitive streaming market through:
Timely Content Delivery: Hulu offers current-season episodes of TV shows just one day after their network broadcast, a feature most competitors lack.
Flexible Pricing Options: By providing ad-supported and ad-free plans, Hulu caters to both budget-conscious viewers and those seeking premium experiences.
Bundling with Disney+ and ESPN+: This bundle strengthens Hulu’s value proposition, appealing to families and sports fans by combining entertainment, live sports, and more.
Advertising Innovation: Unlike platforms that rely solely on subscriptions, Hulu’s robust advertising model provides an additional revenue stream and lowers subscription costs.
Parent Company Support
Hulu is majority-owned by Disney, with a minority stake held by Comcast. This ownership provides Hulu with:
- Access to Disney’s vast content library and production capabilities.
- Marketing and bundling opportunities with Disney’s other streaming services (Disney+ and ESPN+).
How Hulu Generates Money: Revenue Model of Streaming Platform
Hulu’s revenue model revolves around a hybrid approach, combining subscription fees, advertising income, and content partnerships. This multifaceted strategy ensures steady income while catering to a wide range of audiences. Here’s a detailed breakdown of how Hulu work to generate money:
Subscription Revenue
Hulu offers several pricing tiers to appeal to different viewer preferences, generating significant income through subscription fees:
Ad-Supported Plans
Cost: $7.99/month (as of 2025).
What It Offers: Affordable access to Hulu’s extensive library of TV shows, movies, and Hulu Originals, with intermittent ad interruptions.
Ad-Free Plans
Cost: $17.99/month.
What It Offers: An uninterrupted viewing experience with no ads, catering to premium users willing to pay more for convenience.
Hulu + Live TV
Cost: Starting at $76.99/month.
What It Offers: Access to live TV channels (news, sports, and entertainment) combined with Hulu’s on-demand library.
Bundles
Hulu offers bundles with Disney+ and ESPN+, starting at $13.99/month.
Advertising Revenue
Hulu’s ad-supported plans are a key driver of revenue, with a sophisticated advertising model designed to maximize profitability.
Targeted Ads
Hulu uses viewer data (e.g., preferences, demographics, and viewing history) to deliver personalized ads. This makes ads more relevant to users and valuable for advertisers.
Ad Formats
Dynamic Ad Insertion: Seamlessly integrates ads into live TV and on-demand content.
Interactive Ads: Allows viewers to engage with brands directly through clickable ads, increasing ad effectiveness.
Pause Ads: Non-intrusive ads that appear when viewers pause content.
Partnerships with Advertisers
Hulu work by collaborating with a range of brands and businesses, offering them access to millions of viewers. The platform’s ability to target specific demographics makes it a highly attractive advertising space.
Just like Netflix, this video streaming platform doesn’t believe in staying behind when it comes to wooing advertisers to promote anything in front of their users. Hulu provides mainly 3 advertising options to enhance the reach of advertisers, these options include:
1. Splash: Advertisers who opt for this option can easily intercept nearly every unique viewer on the streaming platform on a single day.
2. DMA Targeting: Advertisers investing in this option can easily intercept nearly all the viewers of the streaming platform within a specific market.
3. Targeted: Advertisers opting for this advertising option are facilitated to target the ad according to the geographic area, demographics, genre, content length, and more.
Besides this, this advertising platform also provides an advertiser with seasonal ad targeting options, they can opt for seasonal ads such as advertising on Earth Day, Father’s Day, Mother’s Day, Friendship Day, and many other special occasions. The company avails numerous advertising options for the advertisers, they are facilitated to choose from a normal interstitial ad with big brand integrations during the Hulu original shows. This list includes the following:
- Custom Integrated Commercial.
- Custom Integrated Slates.
- Spotlight.
- Premium Slate.
- T-Commerce.
- Brand Integration.
Content Licensing and Distribution
Hulu generates revenue by licensing its original content and collaborating with networks and studios. Key aspects include:
Licensing Agreements
Hulu secures rights to stream current episodes of TV shows from networks like ABC, NBC, FOX, and more. These agreements often include revenue-sharing models, where Hulu and the networks split the profits from advertising and subscriptions.
Original Content
Hulu’s Originals (e.g., The Handmaid’s Tale and Only Murders in the Building) not only attract subscribers but can also be licensed to other platforms globally, creating an additional revenue stream.
Parent Company Synergies
Hulu is majority-owned by Disney, which enhances its revenue-generating potential:
Cross-Promotion with Disney+ and ESPN+
Disney promotes Hulu through its other platforms, driving subscriber growth.
Bundled deals with Disney+ and ESPN+ boost Hulu’s subscriber base while providing cost savings for users.
Access to Disney’s Content
Disney’s vast library of movies and shows provides Hulu with exclusive content, reducing its dependency on third-party licensing.
Affiliate Marketing and Add-Ons
Hulu earns additional revenue by offering premium add-ons that enhance the user experience:
Add-Ons: Subscribers can pay extra for access to premium networks like HBO Max, Showtime, and STARZ. Hulu earns a commission from these partnerships.
Affiliate Marketing: Hulu partners with device manufacturers and platforms (e.g., Roku, Amazon Fire Stick), sharing profits from bundled offers.
Strategic Advertising Models for Live TV
For Hulu + Live TV, additional revenue comes from live TV advertising. Advertisers pay a premium to place ads during live events such as sports and news broadcasts, which draw high viewer engagement.
How Much Hulu Live TV Cost?
Now you know well how Hulu work to meet the growing demand for entertainment. Users can leverage a 7-day free trial of the streaming platform, but later, it will cost around $39.99 a month.
Compared with that Hulu’s rival PlayStation Vue offers the same streaming service to the users at the cost of $35 to $65 per month, it completely depends on which plan users opt for! while Sling TV costs the same, the DVR function of this streaming platform is still in beta and does not work efficiently on every channel.
YouTube TV offers unlimited storage at the cost of $35 but offers its service only in limited cities and doesn’t possess many channels.
Final Thoughts
Hulu is uniquely positioned to remain a significant player in the streaming wars due to its strong partnerships, diverse content offerings, and live TV capabilities. By embracing innovation, expanding globally, and continuing to invest in original programming, Hulu can thrive in an increasingly competitive market.
Its future lies in being more than just a streaming service—it must evolve into a complete entertainment hub that caters to diverse viewer preferences, from cord-cutters to families to sports fans. With Disney’s backing and a proven ability to adapt, Hulu is poised not only to survive but to shape the future of streaming.
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FAQs
What Hulu work to stand out from other streaming platforms?
Hulu stands out for its combination of on-demand content, live TV options, and next-day access to current TV episodes. It also offers flexibility through ad-supported and ad-free plans, as well as bundle deals with Disney+ and ESPN+.
How does Hulu plan to compete in the future?
Hulu is focusing on creating more original content, leveraging Disney’s ecosystem, expanding live TV offerings, and potentially entering international markets. It’s also embracing advanced personalization and innovative features like AI-driven recommendations.
Can Hulu expand globally, and if so, how?
Hulu has great potential for global expansion, especially if Disney integrates Hulu into its Disney+ platform in regions outside the U.S. However, challenges like licensing agreements and regional competition will need to be addressed.
What are the key features of Hulu’s Live TV service?
Hulu’s Live TV service includes 85+ channels covering sports, news, and entertainment. It also offers cloud DVR functionality for recording live events, making it a perfect solution for cord-cutters who still want live programming.
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How customizable is the white-label Hulu clone?
The white-label Hulu clone is fully customizable to match your branding, content requirements, and unique features.
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