Hulu Plus Could Get a Price Cut

Hulu might slash the price of Hulu Plus in half, from $9.95 a month to $4.95 a month, according to Media Memo. The possibility of a price cut could indicate that the fledgling subscription service, which is still in beta, might not have generated the amount of consumer interest that Hulu had hoped for.

Hulu Plus has been in beta since it was announced in June, making full seasons of past and present TV content available not just on the web, but on connected devices like the Sony (s SNE) PlayStation 3 game console, the iPhone and the iPad. (s AAPL) But it’s not the only streaming subscription service on the market, and Netflix (s NFLX) has a huge head start.

Netflix has nearly 17 million subscribers and is available on more than 200 different connected devices, which have shipped 60 million units. Oh yeah, and it’s getting more aggressive about grabbing streaming TV content to go after subscribers that should be in Hulu’s core audience.

Dropping the price from $10 a month to $5 a month would make Hulu Plus a lot more competitive with services like Netflix, (s NFLX) which currently has more than 20,000 streaming TV and movie titles available online. Netflix’s current pricing begins at $8.99 for unlimited streaming as well as one DVD-by-mail rental at a time. But with the launch of its first streaming-only offering in Canada, Netflix is considering rolling out a similar offering in the U.S. One pricing scheme it is testing would price its streaming-only offering at $7.99, with the streaming and one-disc DVD-by-mail offering at $9.99.

The possible price cut also comes as Hulu is busy prepping for a public offering, which it could file for before the end of the year. According to a report, Hulu is looking to raise $200 to $300 million to bring on more content and better compete with Netflix and other streaming offerings.

To see what else Hulu might have in store, come see Jason Kilar’s keynote at NewTeeVee Live on November 10 in San Francisco.

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