Customers paying $7.99 a month for what used to be called Hulu Plus will be able to add Showtime to their Hulu subscription for an extra $8.99 a month — two dollars less than what Showtime will charge Apple TV and other online video customers.

Showtime Networks’ online streaming service will launch in early July for $10.99 a month, $4 less than HBO Now, which charges $14.99. But Hulu customers will get an extra 18 percent discount if they bundle Showtime with Hulu’s premium option.

Hulu customers who subscribe to Showtime will have access to every Showtime original series ever produced along with Showtime’s full catalog of the same movies, documentaries, specials and sports programming available to cable television customers. Hulu will also carry the east and west coast feeds of Showtime’s primary channel for those who want to watch live events.

The partnership is designed to strengthen Hulu’s competitive position against Netflix and Amazon’s video services.

Showtime CEO Matt Blank doubts Showtime’s online streaming service will cannibalize its existing subscriber base, although most satellite and cable providers charge at least $5 more per month for the premium movie channel ($13.99-16.99 through most cable/telco/satellite providers).

[flv]http://www.phillipdampier.com/video/Bloomberg Showtime CEO Broadband-Only Customers Are an Opportunity 6-4-15.flv[/flv]

Showtime CEO Matt Blank explains to Bloomberg News why selling Showtime online for $10.99 a month ($8.99 for premium Hulu customers) will not hurt existing distributors like cable and satellite providers. (4:22)