Walt Disney Co. is set to acquire a 33% stake in Hulu from Comcast for approximately $8.6 billion, solidifying Disney’s control over the popular streaming service. Disney has effectively operated Hulu since 2019 when Comcast relinquished its authority, making Disney the dominant force in the platform’s operations.
Background and Evolution of Hulu
Hulu, established in 2007, was originally formed as a response to the increasing influence of the internet and aimed to provide a platform for entertainment conglomerates to showcase their TV shows online. Disney joined Hulu in 2009 with plans to offer content from its properties, including ABC, ESPN, and the Disney Channel. Over the years, Disney increased its stake in Hulu, ultimately gaining majority control of the platform after acquiring 21st Century Fox.
Disney’s Treatment of Hulu
Disney has integrated Hulu into its portfolio of services, exemplified by the inclusion of Hulu in a streaming bundle that also features Disney and ESPN. This strategy aimed to offer consumers a comprehensive entertainment package.
Recent Developments and Pricing Strategy
In response to market dynamics, including the expansion of streaming services, low subscription prices, and widespread password sharing, Disney has taken measures to combat non-paying users. The company also raised prices for ad-free versions of Disney and Hulu by 20% to 27%. CEO Bob Iger explained that these price adjustments were intended to steer consumers towards more affordable ad-supported options. Disney believes that the advertising market for streaming services is growing and has expressed an interest in transitioning more subscribers to ad-supported tiers.
Disney’s Streaming Objectives
While Disney has not provided detailed comments on the acquisition, it is evident that this move aligns with the company’s streaming objectives. The deal with Comcast further solidifies Disney’s control over Hulu, enhancing its position in the competitive streaming market.
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