How Hulu’s Success Could Prove Costly for Disney

·1-min read
How Hulu’s Success Could Prove Costly for Disney

Most of the ink (including on these online pages) regarding Disney’s streaming ambitions is spilled on Disney+, but the entertainment goliath’s other streaming service has actually been key to its bottom line. That would be Hulu. Despite a subscriber base that’s less than half the size of Disney+, Hulu posted a surprising profit during Disney’s most recent quarterly earnings (though the company didn’t disclose how big it was). And the surprise profit, on the backs of original hits like “The Handmaid’s Tale” and “Little Fires Everywhere,” came roughly two years ahead of schedule. Now here’s the bad news: Hulu’s success will probably end up costing Disney, which is on the hook to buy out Comcast’s increasingly valuable stake in the 14-year-old streamer. “The value of Hulu is rising quickly with the rapid shift of consumer behavior toward streaming, which means the cost of buying out Comcast is stepping higher everyday,” LightShed Partners analyst Rich Greenfield wrote in a research note last week the morning before Disney’s earnings report. Hulu has always been a curious streaming service. It began in 2007 as a joint venture for three of the four broadcast networks (ABC, NBC, Fox) to dump their linear programming to...

Read original story How Hulu’s Success Could Prove Costly for Disney At TheWrap

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting