Cable and satellite subscribers will once again be tempted to cut the cord, as major entertainment companies are bringing in more skinny bundle offerings. Hulu and AT&T shed more light into their new offering at the Advertising Week panel and admitted that they plan to target cord-nevers and cord-cutters.
Peter Naylor, senior vice president of advertising sales for Hulu, said that, “the way people are watching, a la carte and on demand, is the way of the future.”
AT&T Entertainment’s executive vice president and CMO, Brad Bentley, said, “We had the opportunity to deliver this premium experience with a greater choice in flexibility. We have a chance to really customize and personalize the experience using data.”
The latest streaming service from AT&T, DirecTV Now, will be available to the customers by the end of this year. AT&T is looking to attract more customers by offering over 100 popular TV channels, which broadcast fan favorite TV series, comedy programs, news updates, exclusive sports events, and a lot more.
Hulu is also ready to launch a skinny bundle of network and cable channels to their subscribers. This offer will be available to the Hulu subscribers by next year. “We’re trying to take the best of what we like, and a generous dose of reinvention,” Naylor said.
He also added that audiences will be in for a treat and they will receive the best “user experience”, if major content providers allowed Hulu to offer their channels in their latest skinny bundle offerings. Time Inc.’s ad-supported People/Entertainment Weekly Network (PEN) was recently added to Hulu’s list of offerings.
Bruce Gersh, senior vice president for strategy and business development at Time Inc. said that the response was “fantastic.” He added, “Our advertising partners have really responded well.”
PEN network put up an 18-minute video about the recently divorced Hollywood celebrity couple Brad Pitt and Angelina Jolie last Friday, which grabbed a lot of viewer attention. Gersh said, “It just shows that there’s excitement about the brand and the access we have.”
The number of ads aired on Hulu are also very less when compared with other providers. “You can’t mirror the ad load of a conventional TV experience and expect people to watch,” Naylor highlighted. He also added that majority of new subscribers opted for $7.99 per month plan rather than opting for the ad-free plan.
“We had the single biggest year in advertising the same year we introduced an ad-free service. But people want to be able to get what they want,” he said.