Hulu has been teasing its upcoming live TV service for several months now and openly discussing its target price of around $40/month. Now TechCrunch reports that the monthly service will indeed cost $39.99/month, per sources, and include ads as well as the current on-demand Hulu service.

The live TV service will include access to Hulu’s on-demand content, Hulu Originals, live network broadcasts, and the broadcast networks’ on-demand content. The $39.99 price point is not yet set in stone – it could still come down, but won’t likely rise given Hulu’s earlier promises and the now fiercely competitive market for streaming TV.

The report adds that Hulu says it is “still in the process of building its live content package and has not finalized any pricing yet.”

Similar to other Internet TV services, Hulu plans to offer a cloud DVR feature for capturing live broadcasts to watch later when not otherwise available on-demand.

According to the report, Hulu plans to offer a more expansive cloud DVR feature with more capabilities for under $20 more per month.

However, Hulu is considering an add-on package to its live TV service that will include an unlimited DVR with up to 200 hours of programming, as well as unlimited streams. (There may be a cap on concurrent streams outside the home, though – we’ve heard three.)

Finally, TechCrunch says an option to pay for the standalone live TV service may be available in the future at a lower rate than the version that includes Hulu’s $7.99/month on-demand service.

And like Hulu’s current subscription service, an option to reduce ads for $4 more per month is expected, although pricing on the new service does not appear to be nailed down just yet.

Hulu previewed the user interface for its upcoming TV service earlier this year as it continues to sign deals with content partners like CBS and A&E.

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