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How Disney’s Decision Will Impact the Status of Hulu?

Traditional media is getting redundant with every passing day, as new companies emerge into the market with their new products and services. Hulu is one of those companies, which is known to have a huge market share. But, it isn’t just Hulu that is doing well, but there are many more companies, which have made a name for themselves in the past few years.

Technical Bulls

In the entertainment industry, new associations are made and break every day. Top companies hire people from another reputed entertainment firm to take the business to new heights. Every day in the entertainment industry is more exciting than the previous one. But, I specifically like the curious case of Hulu. The company is owned by many top names such as Disney, Comcast, 21st Century Fox, and Turner. Hulu currently has more than 17 million subscribers, and the number continues to rise with every passing day. But, when it comes to the revenue, then Hulu reported a loss of $920 million last year.

Hulu is a streaming service, but many believe it is still quite irrelevant. The company hasn’t done much to consolidate its position in the entertainment industry like many others have. Despite that, Hulu is an essential digital property, which comprises of a huge amount of significant assets that can provide its owners with a number of outstanding opportunities.

Hulu’s future is going to be interesting because the companies that have stakes of this amazing product too are in an exciting spot.

How good or bad will Hulu perform depends upon the performance of its owners. If owners do well in their respective niches, then Hulu will be able to consolidate its position as the top streaming service.

  • Role of Disney

Disney plays a very crucial role in deciding the fate of Hulu. If Disney is able to utilize Hulu via add-on deals or rebranding the services that Hulu has to offer, which also uses the current infrastructure of Hulu, then it will be great.

But, these particular things give rise to several problems as well. It is a well-known fact that Disney is making its own standalone service, which it won’t give up in the current scenario. When it comes to Comcast and Turner, those two will also not be the part of this plan. Disney is only left with two options. Disney can buy both, Turner and Comcast and get a full responsibility for the entire platform. The second option that Disney is left with is taking the control of all the intellectual property of Hulu. With this, Hulu will become a part of a new company, which is going to be bigger than the current company.

Disney shouldn’t buy Hulu in the current scenario because the company has invested in many other places. It will be hard for the company to withdraw its control from those places. In 2016, Disney had 30% control over Hulu, but a year later, Disney has recorded an increase of 75%. In my opinion, Disney shouldn’t buy Hulu because it already has a strong relationship with a streaming technical provider, which has proven its might.

Disney can control 60% of Hulu and could run almost everything on the platform. But, Disney is creating its own streaming service, work of which is about to be completed. So, there is a good chance that all the content that Disney owns will keep its own streaming service.

If Disney plans to take down its content from Hulu in order to get everything on its own streaming platform exclusively, then Hulu is going to get weaker. The same can be said for the streaming service in the opposite case. Disney can do one thing, they can sell Hulu to other top companies in order to save Hulu.

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