Hulu cuts basic plan to $5.99 after Netflix raises costs

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NEW YORK (CNN Business) - Hulu has dropped the price of its cheapest package by $2. This comes just a week after competitor Netflix raised prices for its services.

Hulu's basic plan, which includes ads, will cost $5.99 per month starting February 26, the company announced Wednesday.

The streamer also said that it will raise the price of its Live TV plan to $44.99 per month, a $5 increase. The price of its on-demand plan without ads will remain the same at $11.99.

This news comes in the wake of Netflix's decision to raise prices in the United States. All three of that company's plans will increase in price by $1-$2, which means the most basic version of Netflix will cost $9. Unlike Hulu, Netflix does not have ads on any of its plans, nor does it offer a service with live TV.

AT&T, Disney and NBCUniversal are all set to launch streaming services in the next two years.

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