Hulu cuts price of most popular plan by 25 percent

Hulu will raise price of live TV packages but lower the cost of basic streaming

As part of the change, the company's basic service will now cost $2 less per month while its Live TV service will cost $5 more per month.

Visit Hulu.com for more information on streaming plan prices. This is an ad-supported plan, so you'll have to sit through the occasional commercial when streaming a TV show.

There is no change to the standard Hulu plan, which offers the same content catalog as the lower tier, but without ads to interrupt your viewing experience. That hadn't changed. And Hulu With Live TV is getting more expensive - jumping from $39.99 to $44.99 a month.

Last week, Netflix announced that it's raising its subscription plan prices for USA customers, who will eventually have to pay $8.99 per month for the streaming service's basic plan and $15.99 per month for Netflix's Ultra high definition (HD) streaming plan.

Netflix stock, though, has struggled since the company last reported quarterly results.

Nadal in tears after reaching Australian Open final
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Hulu (No Ads) subscriptions are staying the same price at $11.99 per month, competing with Netflix's most popular subscription that now costs $12.99 per month.

The streamer also said that it will raise the price of its Live TV plan to $45 per month, a $5 increase.

Hulu now maintains a customer base less than half the size of Netflix's 58 million US-based subscribers.

Hulu said the increase coincided with a greater number of available channels after it reached a September agreement with Discover Inc. and made other improvements to reliability and usability. Shares were down another 1% mid-Wednesday.

Hulu will have one price-hike, however. Disney will soon obtain majority ownership over Hulu, all but the deal is yet to be finalized. Hulu staff members have been mum so far on what the acquisition will mean for the future of the streaming service and its prices. Comcast owns 30%, and AT&T's WarnerMedia owns the remaining 10%.

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