Walt Disney Co. has announced its plans to acquire a 33 percent stake in Hulu from Comcast for a staggering $8.6 billion. This deal will grant Disney full control over the popular streaming service. Since 2019, Disney has been running Hulu after Comcast relinquished its authority and became a silent partner.
When asked about the acquisition, Disney declined to comment, simply stating that it will contribute to the company’s streaming objectives.
Hulu was initially launched in 2007 and quickly gained support from entertainment conglomerates who wanted to combat the growing influence of the internet by providing an online platform for their own TV shows. Disney joined the venture in 2009 with the intention of offering content from ABC, ESPN, and the Disney Channel. A decade later, Disney obtained majority control over Hulu when it acquired 21st Century Fox.
Disney has treated Hulu as one of its own services throughout the years. For example, when the company launched its own streaming platform, Disney+, in 2019, it immediately offered a bundle that included Hulu, Disney+, and ESPN+.
In response to the challenges posed by the rapid expansion of streaming services, low prices, and widespread password sharing, Disney has vowed to crack down on non-paying users. Additionally, they have increased the prices of ad-free versions of Disney+ and Hulu by 20 percent to 27 percent. In August, CEO Bob Iger explained that the price hikes were intended to steer consumers toward the cheaper ad-supported versions of these channels, whose subscription fees remained unchanged.
Mr. Iger also commented on the advertising market for streaming, stating that it is thriving and surpasses the traditional TV ad market. Disney’s pricing strategy aims to encourage subscribers to migrate to the ad-supported tier.
