Hulu is rejiggering its pricing model next month. Beginning February 26, the streaming provider's entry-level on-demand package — the one that shows ads with each video — is going down in price by a couple bucks, while the cost of adding live TV to your plan will go up. Hulu's ad-free on-demand plan will stay the same price.

The cheapest plan offered previously cost $7.99 a month; it's going down by two bucks, to $5.99. Ad-free streaming will stay the same price it's been — $11.99. Adding live TV to either plan will tack $39 onto your monthly bill, an increase of $7 over the old rates (although with the new, lower price on the ad-supported plan, ads plus live TV is effectively going up by $5 a month).

Hulu pricing changes effective February 26

  • On-demand (ads):
    • $7.99 →$5.99
  • On-demand (no ads)
    • $11.99 → $11.99
  • On-demand (ads) plus live TV:
    • $39.99 →$44.99
  • On-demand (no ads) plus live TV:
    • $43.99 →$50.99

Subscribers who sign up on or after February 26 will be subject to the new pricing model immediately. Existing customers' bills will change the first time they're charged after that date. Netflix also recently announced it would be increasing rates on its streaming plans in the near future.