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Hulu’s live TV service will be less than $40

Cheaper than AT&T’s DirecTV Now

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Hulu’s upcoming live TV service, which will carry shows from Disney, Fox and CBS, will be less than $40 a month.

The company’s CEO, Mike Hopkins, made the announcement during a panel at a conference in Las Vegas, according to Variety. Hopkins pointed out that while a specific price has yet to be figured out, it wouldn’t be an introductory fee. Last November, AT&T made headlines when it launched its live-TV service, DirecTV Now, for $35 a month. The company confirmed, however, that the $35 price point was an introductory offer, and would move to $60 a month in January 2017.

Hopkins added the sub-$40 price would also include a subscription to Hulu’s streaming service, which currently runs for $8 a month, and access to a cloud-based DVR. Hopkins told the group gathered at the conference that he believed it was the extra amenities that came with the live TV service, like the cloud-based DVR and Hulu subscription, which gave the company an edge in a quickly crowding sector. The CEO did not, however, confirm if this was for a basic, top-tier or all-in-one package.

Sling TV and PlayStation Vue have been around since 2015 and may be alternatives consumers are interested in. Sling TV has three options for people: a $20 base plan, a $25 middle ground and a $40 all-inclusive. The more you’re willing to spend, the more channels you get. The $40 package allows subscribers access to channels from both the $20 and $25 plan.

PlayStation Vue also has a few pricing tiers: basic, core, elite and ultra. Like the Sling TV, the basic packages contain fewer channels while the pricier options include subscriptions to premium networks and live sports. These subscriptions range from $49.99 to $74.99. Sony also offers stand-alone network subscriptions through the Vue, like HBO Now for $15, for those who want to opt into a specific channel.

While CBS recently made an agreement with Hulu for its live TV service, the network is holding back access to specialty channels like the CW. It is possible that channels like the CW will be added in the future, but neither CBS or Hulu have said they’re exploring those options at this time. Last July, CBS signed an exclusive contract with Netflix reportedly worth $1 billion to carry all new seasons of CW shows, including Arrow, The Flash, Supergirl and Legends of Tomorrow, eight days after their seasons end.

Hopkins did not give an estimated release date for Hulu’s live TV service, but more information is expected soon. The CEO is in Vegas to show off the service’s interface at the Consumer Electronics Show.

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