Disney Takes Over Hulu
by EG
Disney has taken control of Hulu, giving the media behemoth a place to put much of its popular content (such as Deadpool). Along with the launch of Disney+ in the fall, the Disney-fication of Hulu could be a deadly blow to Netflix, which will have to combat Disney's popular content with its own original programming. Read on for details.
Via Deadline.
Disney and Comcast announced today that Disney will assume full operational control of Hulu, effective immediately.
In return, Disney and Comcast entered into a “put/call” agree regarding NBCUniversal’s 33% ownership interest in Hulu.
Reporters gathered in New York for the Disney upfront press conference were startled by the news, announced verbally by a Disney rep as the event was beginning and the press release was hitting the wire. At the same time, it had also been widely expected given Disney’s strategic push into streaming and its description of Hulu as one of “three legs of the stool” along with Disney+ and ESPN+.
Hulu, which managed to evolve since its 2007 creation despite an unusual multi-company ownership structure, has seen dramatic subscriber growth of late, reporting earlier this month 28 million total subscribers across its live-TV and on-demand offerings. Its advertising revenue has also surged, with half of subscribers opting for the basic, ad-supported tier of Hulu on demand.
The $71.3 billion transaction that saw Disney acquire Fox’s Hulu stake along with studio and network assets, which closed in March, set things in motion for a full roll-up of Hulu. The streaming service’s original programming, highlighted by the Emmy-winning Handmaid’s Tale, and vast library of film and TV titles, including “catch-up” titles that hit the streaming service soon after linear premiere, make it a valuable chess piece for Disney. Given the family-friendly nature of Disney+, more adult-oriented fare created under Disney’s ownership — including potentially film franchises like Deadpool — will find a home on Hulu.
Get the rest of the story at Deadline.
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