Did you know that Disney owns Hulu? In case you haven’t heard, the company has acquired Hulu, a popular video-streaming service, for a whopping $5 billion. While this news has excited fans of the entertainment giant, it’s also caused quite a stir among consumers and media experts. Many are wondering how the acquisition will impact the company’s future. The answer is quite complicated.
Disney’s ownership of Hulu
If you’re looking for a good stock to invest in right now, there’s no better option than Hulu. It’s a popular subscription video service, and if it carries advertisements, it could become a dominant player in the streaming space.
The company is owned by the Walt Disney Company and Comcast, with a 33 percent stake held by Comcast. While there are other major ad-supported online streaming services, Hulu stands out because of its primary subscription model.
Hulu is a streaming service that offers a large selection of films and television series from both Disney and 20th Century Fox, as well as a handful of originals. A small part of the library is free. However, most content must be purchased.
The company has done a good job of marketing its services. Despite the stock’s recent decline, investors are still a fan. In the fourth quarter of 2019, Hulu had a stock price of $62 per share.
There are several reasons why it makes sense for Hulu to be owned by the Walt Disney Company. For one thing, it will gain greater control over the content that it shows.
Another reason is that Disney is a powerhouse in the entertainment space. After all, it owns ESPN. Not only that, but the company is also acquiring Twenty-First Century Fox’s entertainment assets. This should help strengthen the studio division.
But there’s a problem. YouTube TV subscribers say that Disney’s ownership of Hulu is bad for them. Specifically, they say that Disney’s deals with Google have caused their base package to increase from $35 to $65 a month.
If Disney can’t resolve this problem, the subscriber base might look elsewhere. Perhaps they’ll try their luck with another company like Comcast.
Comcast’s ownership of Hulu
Comcast is set to sell its stake in Hulu to Disney. The deal will be completed in January 2024. As part of the deal, Disney will buy Comcast’s 30% stake and then take over operations of Hulu.
It’s a big deal for both companies. If the deal goes through, Comcast will walk away with a substantial profit. And, in addition to making money from Hulu, it will also have a stronger presence in the European market.
Despite losing out to Disney in a bidding war for 21st Century Fox, the streaming giant has made moves to increase its streaming offerings. This includes the launch of a new branded content tile on its Disney+ streaming service. In addition, it announced plans to spend about $8 billion to boost its streaming efforts.
Meanwhile, Disney’s $71 billion acquisition of 20th Century Fox assets included one-third of Hulu. That’s a good sign for the online TV service.
The deal, however, could put Hulu in an awkward position internationally. While the company is a strong competitor in the subscription streaming arena, it’s unclear how many international users it has.
It’s possible that Disney will make an offer for Hulu in the near future. However, it’s also possible that Comcast will hold onto its stake. One reason for that may be that Hulu’s value is largely based on its relationship with Netflix. Another is that if the two companies decide to collaborate on an international version of Hulu, that would make the company’s valuation more valuable.
Regardless of who acquires the stake in Hulu, there will be some major decisions to be made regarding its future. Comcast can continue to operate the Peacock service as usual, or it can pull exclusive programming from Hulu.
Disney+ vs Disney+
Hulu and Disney+ are both well-known streaming services. They both offer thousands of hours of licensed content. However, there are some big differences. For one thing, Hulu isn’t available in most countries. On the other hand, Disney+ offers exclusive content that’s only available on its platform.
Hulu’s main selling point is the wide range of content it has to offer. That includes live TV, movies, and original shows. As such, it’s a great choice for those who want to catch up on everything from Saturday Night Live to The Simpsons. Those who love live action movies, however, should probably go with Disney+.
While the two rivals are battling for a share of the market, they each have their own strengths. Disney+ is the best option for Star Wars fans and those who love classic Disney animation. It also has a good range of family-friendly content.
On the other hand, Hulu has a huge back catalog and a central platform for viewing TV episodes. However, it often has problems with video quality.
While Hulu is a bit cheaper than Disney+, its offerings aren’t as expansive. Disney offers a broader selection of movies, cartoons, documentaries, and live action shows.
On top of that, Disney has a better search function and offers Dolby Atmos audio on selected programming. In addition, its new Disney+ app features parental controls and a curated list of things to watch.
Meanwhile, Disney+ features a streamlined price structure and a massive library of Disney-branded content. Disney is also planning to launch ad-supported Disney+ later this year. But for now, you’ll have to get your fill of Disney+’s library of Disney-branded content on its own.
Disney+’s complementary catalogues mean a combined platform would offer a more diverse content offering
Disney+ is a subscription-based streaming service, which offers original content. In addition, it is the home of exclusive licensed series. This includes shows from Disney, Marvel, Star Wars, and National Geographic.
Disney+ offers a two-week free trial. The service costs $8 per month. It is the flagship of Disney’s streaming services. It is also a critical driver of renewed growth for Disney. There is a strong demand for original digital series and Disney has a strong brand presence in the market.
Disney+ is expanding internationally. It will launch in select international markets next year. As part of its global expansion, Disney plans to increase the number of originals it releases each year. These include new Disney Studios releases, franchise specific series, and shows from National Geographic.
Disney+ is expected to grow significantly over the next few years, with long-term goals of reaching 230 million to 260 million paid subscribers. However, this year, Disney could face softer ad revenues. This is due to lower ad rates on the ad-supported option, which is the default.
Disney is leveraging its existing technology investments. Ad-supported options have proven to be a successful strategy for Hulu. For Disney+, launching an ad-supported tier is an opportunity to attract a new segment of budget-conscious consumers.
The ad-supported tier will launch alongside the existing ad-free Disney+ experience. Disney expects the ad-supported tier to drive an accelerated demand for the streaming service. It will also help to mitigate internal challenges to subscription growth.
Disney’s long-term expansion plans for the streaming business will depend on the success of its ad-supported tier. The company plans to leverage its existing technology investments, as well as its success with ad-supported options for other services.
Disney’s relationship with Comcast
The Walt Disney Company and Comcast recently renewed a long-term agreement. That includes a bundle of channels that Disney will continue to provide to Xfinity TV cable customers.
As part of the deal, the two companies will also start distributing ESPN’s Atlantic Coast Conference Network. This will be a new channel that will feature the ACC, the NCAA’s Division I football conference. It will be the home of more than 1,300 events per year, with a focus on college sports.
The deal between the two giants will also extend the Xfinity On Demand platform. Comcast has agreed to expand the content on the service to include more than 10 high-definition channels.
In addition to the branded channels that will be provided to Xfinity customers, Comcast has agreed to carry ESPN, ABC, Freeform and the Disney Channel. The company has also renewed its carriage of ABC owned TV stations in New York and Chicago.
The partnership between the two companies will enhance the multichannel business model and deliver the best video content to consumers. For those of us who love to watch sports, this is a big win.
Although the two rivals have had a relatively good relationship over the past year, there are still some differences. One of the biggest is the issue of Hulu.
NBCUniversal has one-third of Hulu. Comcast owns the other two-thirds. And while the two companies may be partners in the streaming space, there is a chasm over Hulu’s value.
If Disney decides to buy out the other third, it would supercharge the streaming efforts of its partner. Whether or not that’s the right move is still up in the air.