In the event that you made the jump from Hulu to Hulu Plus, then you’ve probably noticed that the paid service still runs ads. Unlike its competitor Netflix, Hulu Plus has yet to scrap the ad spots featured between show segments. The frequency and length of these ads are shorter than those seen on Hulu, but ultimately they still exist despite a $7.99 monthly fee. It’s been a sore spot for many users who receive an ad-free experience on Netflix for the same amount of money. Hulu acting CEO Andy Forssell hears you, and he is working on tossing out Hulu Plus ads… just not yet.
According to Forssell, who spoke at Goldman Sachs Communacopia conference this week, Hulu makes around $7 in ad revenue per Hulu Plus customer. It’s money that the streaming platform isn’t willing to turn down yet. In Forssell’s words, the ad-generated revenue allows Hulu to buy more content — including original programming, which Forssell claims makes up 5% of total Hulu viewing right now — thus providing its customers with a richer subscription service. However, Forssell reiterated that Hulu, in the future, would like to switch to an ad-free model.