Home / Business / Is this the beginning of the end for Hulu?

Is this the beginning of the end for Hulu?



<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The path of access to Disney (NYSE: DIS) taking full control of Hulu has become a lot easier this week. Disney concluded a sale / purchase agreement with the parent NBCUniversal & nbsp;Comcast (NASDAQ: CMCSA) – owner of the third of the stake that the House of the Mouse does not already have – so that one or the other of the parties gives Disney ownership 100% by January 2024. Comcast should win at least $ 9.2 billion if its stake is sold to Disney, and more if Hulu is valued at just over $ 27.5 billion at the time. "Data-reactid =" 11 "> Disney (NYSE: DIS) taking full control of Hulu has become a lot easier this week. Disney has entered into a sale / purchase agreement with NBCUniversal's parent Comcast (NASDAQ: CMCSA) – owner of the third of the stake that the House of the Mouse does not already have – so that one or the other of the parties gives Disney ownership 100% by January 2024. Comcast should win at least $ 9.2 billion if its stake is sold to Disney, and even more so if Hulu is valued north of $ 27.5 billion at the time.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Following the sale of & nbsp last month;AT & T& # 39; s & nbsp;(NYSE: T)& nbsp; 9.5% position on Disney and Comcast in a $ 1.43 billion contract, Disney held more than 30% of the capital at the beginning of the year – before doubling its stake in the agreement with Twenty-First Century Fox closed in March – now effectively control all the enchilada. & nbsp; "data-reactid =" 12 "> As a result of the sale of AT & Tof (NYSE: T) Position of 9.5% on Disney and Comcast under a $ 1.43 billion contract, Disney held only 30% of the capital at the beginning of the year, before doubling its stake in the agreement on the sale of Twenty-First Century Fox, closed in March, to this day. effectively control all the enchilada.

Wall Street likes the Disney-Comcast deal. The shares of both stocks rose on the rise. Disney now has more flexibility in how it groups, promotes and programs Hulu, as soon as it acquires full operational control immediately. Comcast now has a guaranteed floor that it will be able to collect from 2024 at a price well above that set by AT & T last month. Everyone seems to be happy, but things could go wrong for Hulu herself.

Cover for the story of the maid.

Offred or Ofdisney? Source of the image: Hulu.

Peak Hulu

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "No one can deny that Netflix (NASDAQ: NFLX) dominates the streaming video market, but Hulu was the rare bird that had grown in the Netflix mirror last year. Hulu actually & nbsp;grew faster than Netflix& nbsp; in the United States last year, and not just in terms of percentages. Hulu added 8 million net new subscribers in 2018, more than the 5.7 million Netflix net domestic additions. "Data-reactid =" 27 "> It can not be denied that Netflix (NASDAQ: NFLX) dominates the streaming video market, but Hulu was the rare bird that had grown in the Netflix mirror last year. In fact, Hulu grew faster than Netflix in the US last year, not just in percentage terms. Hulu added 8 million net new subscribers in 2018, more than the 5.7 million Netflix net domestic additions.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The price of the Hulu barbell, expanding the extent of the current main network content, and its series to the Emmy Awards and titles & nbsp;The servant's tale& nbsp; have made it a must-have platform for people who want to stay relevant during office discussions. At this point, Disney seems to have raised the ceiling faster than a Haunted Mansion pre-show, as the media giant is now free to pay Hulu aggressively and create a large package containing the service with ESPN + and Disney + at a lower price. . "data-reactid =" 28 "> Pricing at Hulu's bar, the increasing extent of the main content of the current network, and its series grabbing the Emmy's and titles The servant's tale made it a must-have platform for people who want to stay relevant in group discussions at the office. At this point, Disney seems to have raised the ceiling faster than a Haunted Mansion pre-show, as the media giant is now free to pay Hulu aggressively and create a large package containing the service with ESPN + and Disney + at a lower price. .

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But the call of Hulu has always been his Agnosticism If you missed last weekend Saturday Night Live or are finally circulating in abundance The shield or The Eric André showHulu is your jam. Most major networks are on the service, making new broadcasts available the day after they are broadcast. This has always been Hulu's point of sale for Netflix and many other platforms, but it probably will not stay that way. "Data-reactid =" 29 "> But Hulu's call has always been his agnosticism. If you missed last weekend Saturday Night Live or are finally circulating in abundance The shield or The Eric André showHulu is your jam. Most major networks are on the service, making new broadcasts available the day after they are broadcast. This has always been Hulu's selling point for Netflix and many other platforms, but it's unlikely to stay that way.

Hulu's participation has fluctuated over the years, but by early 2019, its owners were Disney, AT & T's WarnerMedia, Comcast's NBCUniversal and Fox, none of the four having a stake greater than 30%. Now, Disney has almost all the content and we can question the size of the vault of Hulu in a few years. Comcast's NBCUniversal gives Hulu another three years, but if you seriously plan to launch its own eponymous service next year, you can be assured that it will fail, unless it's the exclusive hub. most of its contents. Why do you think Disney is pulling its content out of Netflix while these licenses are running? NBCUniversal is not alone in considering freeing itself from the background in 2022. Each Hulu channel, which does not belong to Disney, will have to consider whether it is worth supporting a platform that channel subscriber revenues into a single rival, which should benefit Netflix as the growing number of standalone platforms will inevitably dissipate.

Hulu will always have its own original programming and all that Disney does not think should bind itself exclusively to Disney +, but it's hard to imagine that it's more popular in five years, even with Disney's promising international development for Disney. this service. It may be as good as that for Hulu, and that's just good news for Comcast, with his payday stuck in 2024, and maybe for Netflix.

<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 36 "> More from The Motley Fool

<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Rick Munarriz holds shares in AT & T, Netflix and Walt Disney. The Motley Fool owns shares and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy."data-reactid =" 44 ">Rick Munarriz owns shares in AT & T, Netflix and Walt Disney. The Motley Fool owns shares and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast. Motley Fool has a disclosure policy.


Source link