Hulu to offer an ad-free option for monthly subscribers

Hulu is announcing an option to go ad-free for a $12-per-month subscription fee. The streaming service has long required that all viewers—even paid subscribers—watch ad content in between programming, but this new tier helps Hulu take a stab at its competition—Netflix and Amazon.

The company will keep an ad-supported option for people who don't want to shell out $12 per month. That tier will still cost $8 per month, but in its press release, Hulu reminded customers that it still shows fewer and shorter ads "than scheduled television."

According to The New York Times, Hulu Chief Executive Mike Hopkins summed up his company's decision by saying, “You can split people into two categories: ad avoiders and ad acceptors. There are clearly people who just are not going to buy Hulu because there are ads. We think we can bring them back into the fold with new content and this new choice.”