Coming just after Hulu snagged tons of big movies from rival site Netflix, they've announced a new $12 plan that will remove commercials. While there has been an $8 Hulu Plus option for quite some time with limited commercials, there has never been a way to completely get away from the ads. Here's more from the company on the announcement:

Today Hulu is offering a commercial-free option to subscribers.  Viewers now have the choice to watch Hulu commercial free for $11.99 per month or with limited commercials for $7.99 per month. Current Hulu subscribers will maintain their existing subscription, but will have the choice to switch to the commercial-free option at any time for an additional $4 per month. For viewers who choose to watch content with limited commercials, Hulu will continue to show fewer commercials than scheduled television.

“At Hulu, we pride ourselves on listening to our customers and giving them the best possible experience,” said Mike Hopkins, CEO, Hulu. “Many of our customers have asked us for a commercial free option, and so today we are excited to introduce just that. Providing more choice for consumers is fundamental to the Hulu experience, in addition to an array of choices in content and devices, our customers can now choose to watch with or without commercials.”

This is a big deal for Hulu, even with the price increase. While Netflix is still cheaper for its base streaming service (and has never had commercials), they have no free version to get users in the door (just free trials). Hulu and Amazon are producing more and more original content, and though they've had less success so far than Netflix, they are certainly keeping big red on its toes.

Source: Hulu