- November 1, 2023
- Posted by: legaleseblogger
- Category: Related News
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Disney to Acquire Full Ownership of Streaming Service Hulu
Date: November 1, 2023
Disney has announced its plans to purchase the remaining stake in popular streaming service Hulu, which was widely expected.
The company revealed on Wednesday that it intends to acquire the remaining 33% stake from TV giant Comcast. Upon completion of the deal, Disney will gain full ownership of Hulu and the opportunity to integrate it into its Disney+ platform.
The move comes as Disney has been facing tough competition from other streaming platforms, leading to a decline in profits. By acquiring Hulu, Disney aims to further its streaming objectives and increase its subscriber base.
Within the US market, Disney already offers Hulu as part of bundled packages with its Disney+ and ESPN+ platforms. In the UK, some Hulu content is already accessible through the Disney+ app, including popular shows like The Kardashians and The Bear.
The price of the acquisition reflects a pre-determined “guaranteed floor value” for Hulu, which was established when Disney acquired a majority stake in Hulu as part of the massive deal with Rupert Murdoch’s 21st Century Fox in 2019.
Under an existing agreement between Disney and Comcast, both companies had the right to push for the sale of Comcast’s stake in Hulu, and negotiations have been ongoing to finalize the deal. Comcast’s CEO, Brian Roberts, has highlighted the value of Hulu, referring to it as a “scarce kingmaker asset,” particularly due to the success of exclusive content like the series Only Murders in the Building.
Disney aims to conclude the deal by December 1, pending successful negotiations with Comcast, the parent company of NBC Universal. If the current value of Hulu exceeds the guaranteed price, Disney has agreed to pay NBC Universal the difference.
As of now, Hulu has approximately 48.3 million subscribers, while Disney boasts 146.1 million subscribers globally.
Disney’s CEO, Bob Iger, previously mentioned that the company is heading towards consolidating its various brands’ content into a single app in the US.
Since economies have reopened following pandemic-related lockdowns, the competition for audience attention in the streaming industry has been intense. In the three months ending on July 1, Disney’s revenue grew by 4% compared to the previous year. However, the company experienced a loss of $460 million during this period, in contrast to a $1.4 billion profit in the same period last year.
Alongside Disney, other streaming platforms have been exploring strategies to generate revenue and combat password-sharing issues. Additionally, strikes within the film and television sector in the US have caused disruptions in new content production, further intensifying the competition.
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