Sources close to Hulu are reporting that the video streaming company is gearing up for a new subscription service to launch on May 24.
The new paid service, named Hulu Plus, would provide customers with additional TV episodes and content for a monthly $9.95 fee. The current free, ad-supported service would remain untouched to provide only the five latest episodes of a TV show.
Although Hulu has reported profits for two straight quarters from its current advertising supported format, its owners (News Corp, NBC, and Walt Disney) are unsatisfied with its results. Earnings from the short ads they broadcast are a far cry from the revenues earned from their traditional TV and movie outlets.
In addition to the new paid subscription service, its owners are contemplating more frequent and longer commercials akin to regular network television.