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Why Hulu Doesn’t Have an Ad- Free Service Like Netflix — Yet – Variety. Hulu at some point expects to introduce a subscription video plan without any advertising — and compete more aggressively with Netflix.

But today, the Internet TV service doesn’t want to leave money on the table. Hulu generates $7. Hulu Plus user, according to Andy Forssell, Hulu’s acting CEO and senior VP of content. Hulu Plus carries fewer ads than the content on Hulu. Forssell, speaking at the Goldman Sachs Communacopia conference in New York.

That said, “Allowing people to pay more and not have advertising at all, I think that’s the right path long term,” he added. I’m a big believer in choice… I believe over time we should introduce an ad- free service.”Hulu’s owners — Disney, 2. Century Fox and NBCUniversal — explored selling the Internet TV service earlier this year, attracting bids from parties including Direc.

TV, AT& T, Chernin Group and Yahoo. But in July, the media congloms announced they would retain their stakes in Hulu and invest $7. SEE ALSO: Hulu Pledges to Double Originals, Acquisitions“What the $7. Forssell said. “We want to get it to scale.”In April, Hulu said the Hulu Plus service had hit 4 million subscribers. Currently, Hulu Plus is “midstream” in its path to profitability, Forssell said, while Hulu. Meanwhile, Hulu Plus should gain traction as TV broadcasters delay their newest episodes from becoming available on Hulu. Watch Search Party Online Forbes. Since last fall Fox has delayed free online access to new eps for eight days after broadcast, making them available on Hulu Plus and through pay- TV partners next day after air.

So far, NBC and ABC have continued to release shows on the Internet free day- after- air, but Forssell expects them eventually to follow Fox’s lead.“I have no inside information. But I expect all the broadcast networks to institute a delay as they reach retrans deals (with pay TV operators),” he said. The economics make that inevitable, but I couldn’t guess at the timing.”As for original and exclusive content, Hulu looks for properties “where we can make the difference” to help showrunners find an audience, Forssell said. He cited the company’s recent deal with Lionsgate for comedy “Deadbeat,” to be produced by Dakota Pictures and Brad Pitt’s Plan B Entertainment.“I can’t think of a situation where we’ve bid against someone” for an original series, Forssell said, noting that Netflix has vied with large cablers in some of its deals.

The Hulu Plus subscriber base skews younger than broadcast TV, with a median age of about 3. Forssell. There’s an even 5.

Hulu’s the fastest growing segment. Hulu users watch an average of about 2. There’s no way Hulu could have gotten off the ground without being a joint venture, Forssell said — but he acknowledged that JVs are “by nature somewhat treacherous… different investors sometimes have different agendas.”But, he said, both Disney and 2. Century Fox are “committed” to Hulu’s success. The third owner, NBCU, is forbidden from exercising operational decisions about Hulu under Comcast’s agreement with the U. S. government to acquire NBC.