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Hulu is a streaming entertainment service that lets you watch TV and movies on different devices. It has a variety of plans and options , with a...

Hulu is a streaming entertainment service that lets you watch TV and movies on different devices. It has a variety of plans and options, with a basic at $7.99 per month and a premium at $39.99 per month, with various add-ons like no advertisements, recording capabilities, and simultaneous screens. From Hulu's perspective, the difference in the cost of service provision between each plan or option seems to be basically the same (it streams content to your device and automated software handles advertisements, availability of local or sports channels, etc.). How do you explain the wide variety of prices for virtually the same service, given that the cost to Hulu of providing each plan is basically the same?

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