New York-based Cablevision continues to make the case to its fellow pay-TV providers that there is money to be made from customers who don’t necessarily want a cable subscription. It was the first cable company to make HBO Now available to broadband customers, then it started offering free digital antennas to cord cutters. Now Cablevision will also sell Hulu Plus subscriptions directly to its Optimum Online users.
Hulu — the video streaming service co-owned by Disney, News Corp, and Comcast — has generally sold its $8/month premium Hulu Plus tier itself. Cablevision says it is the first pay-TV provider to allow its customers to add Hulu Plus to their monthly bill.
“The partnership with Hulu reflects Cablevision’s desire to meet customers where they are,” said Kristin Dolan, chief operating officer, Cablevision in a statement.
What’s interesting is that the company has not stated what price it will charge for Hulu Plus, saying instead that price information is forthcoming. One can assume it won’t charge more than the current $8/month, but the inclusion of the service alongside broadband service may give Cablevision the opportunity to offer Hulu Plus at a discount or as a promotional add-on for certain levels of Optimum service.
HBO CEO Richard Plepler has repeatedly made the argument that charging for add-on streaming services is a huge potential revenue source for traditional cable companies because they are also the primary (and sometimes only) seller of broadband services in their markets.
“Who controls the broadband pipes in the U.S.? Our distributors,” said Plepler in 2014. “There is gold in the hills, lets go get it together… its your money too.”
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