In addition, Hulu earns incremental ad revenue from the entry-level package, and it wants to grow that: The company generated nearly $1.5 billion in advertising revenue in 2018, up 45% year over year. Why is Hulu eager to essentially give away the ad-supported VOD plan for free? First, consider that Spotify is likely still paying Hulu some amount per each bundled VOD account (just as T-Mobile pays Netflix for the “free” accounts the wireless carrier includes with unlimited family plans). Meanwhile, the new Spotify-Hulu promo comes two weeks ahead of an event planned by Apple - a key Spotify rival - where it’s expected to unveil a new subscription-video streaming service. Last month, Hulu lowered the official price of the ad-supported plan from $7.99 to $5.99 per month, while it hiked the price of the live TV service by $5 to $45 per month. Hulu has aggressively pushed such promotions and discount pricing as it continues to build up its base in the face of competition from Netflix and other streaming rivals. (Subscribers who are currently paying $12.99 per month as part of last year’s bundle offer will be automatically reduced to the regular Spotify Premium $9.99 price during the promo period.) After the promo ends June 10, Spotify will reinstate the $12.99 price for the bundle with Hulu’s ad-supported plan. Under the new offer, new and existing Spotify Premium subs who pay $9.99 per month will get Hulu’s VOD tier with ads included the promotion also can be viewed as a temporary price cut of the Spotify/Hulu bundle. The two companies teamed up a year ago to offer Spotify Premium and Hulu bundled together for $12.99 monthly.

Once they opt in to the offer, Spotify Premium subscribers will get access to ad-supported Hulu indefinitely at the $9.99-per-month bundle price, with no expiration date. In addition, the number of Spotify accounts eligible for the offer is capped (the companies aren’t disclosing the number).

The catch is that Spotify customers must move to claim their free Hulu account before June 10. will get access to Hulu’s streaming VOD plan with ads for no extra cost - if they take advantage of the promo in the next three months. Hulu wants to get more Spotify users hooked on its streaming TV package: All Spotify Premium users in the U.S.

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