Hulu is raising prices because it has a wholesale transfer pricing problem. If Hulu gross margins are zero or even negative, as some people report, then that's technically referred to in the finance literature as "messed up." Even if gross margins are in the teens that's "awful."
Rich Barton said Netflix knew that to be in the oil business it had to learn to drill its own wells.
Hulu brings to mind a restauranteur who sells hamburgers for fifty cents, which was less than cost, reying to an inquirer about negative margins, “I’ll make it up on volume.”
Reed Hastings: "We're not trying to copy others, whether that's linear cable, there's lots of things we don't do. We don't do [live] news, we don't do [live] sports" https://www.google.com/amp/s/www.engadget.com/amp/2018/03/07/netflix-ceo-reed-hastings-live-tv-disney-marvel/ …
"Disney then bought Hulu. We feel very comfortable doing no ads, like Disney+.”
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