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Why the Hulu-Showtime deal makes sense

From July 2015 Hulu Plus users will be able to add Showtime to their subscription for an additional monthly cost of $8.99. The deal with Showtime capitalises on the tendency of Hulu subscribers to over-index on SVoD and premium channels, shown through Ampere Analysis consumer research. For instance 85% of Hulu Plus users also take Netflix compared to the national average of 46%, and a similar uplift can be seen with other premium channels and SVoD services.  Furthermore, the research has found that the deal is likely to take advantage of Hulu customers' inclination to pay extra for convenience. With the addition of Showtime, Hulu is now able to provide a more comprehensive package of network and premium content - and makes it a more plausible alternative to traditional broadcast pay TV.