Walt Disney Co. has completed its acquisition of a 33% stake in Hulu from Comcast for approximately $8.6 billion. This deal solidifies Disney’s control over the popular streaming service. In 2019, Comcast handed over its authority to Disney, effectively becoming a silent partner.
Disney did not provide any additional comment other than stating that this acquisition will further their streaming objectives.
Hulu was launched in 2007 and quickly gained support from entertainment conglomerates who aimed to create an online platform for their TV shows to compete with the increasing popularity of the internet. Disney joined the platform in 2009, with plans to include shows from ABC, ESPN, and the Disney Channel. A decade later, Disney gained majority control of Hulu when it acquired 21st Century Fox.
Disney has treated Hulu as one of its own services for years. For example, they included a streaming bundle that offered Hulu, Disney+, and ESPN+ when their own streaming service, Disney+, launched in 2019.
In response to the challenges faced by streaming services such as rapid expansion, low prices, and widespread password sharing, Disney has announced its own crackdown on non-paying users. They have also raised prices for the ad-free versions of Disney+ and Hulu by 20% to 27%. CEO Bob Iger explained in August that these increases are aimed at guiding consumers towards the more affordable ad-supported versions of these channels, while keeping the subscription prices unchanged for those channels.
CEO Bob Iger stated that the advertising market for streaming is growing and is healthier than traditional TV ads. He also mentioned that Disney’s pricing strategy is designed to encourage more subscribers to opt for the advertising-supported tier.
