Disney’s deal with Hulu
Walt Disney (DIS) recently signed an agreement with Hulu to bring Marvel characters to the small screen. According to the contract, Disney will produce four adult animated series from its Marvel Studios that will feature Marvel superheroes. The series will be inspired by Marvel characters from TV shows including Hit-Monkey, Howard the Duck, Tigra and Dazzler, and Mental Organism Designed Only for Killing (or M.O.D.O.K). Apart from these series, Disney will make another animated show called The Offenders, where all the four characters will team up.
Disney currently holds 30% in Hulu and will get another 30% stake after it acquires 21st Century Fox (FOXA). The deal is anticipated to close in the first half of 2019. Comcast (CMCSA) owns a 30% stake in Hulu, and AT&T (T) owns the remaining 10%.
Disney’s focus on Marvel
While Disney is seeking to gain from the popularity of Marvel characters by showcasing them on its Hulu platform, some Marvel series such as Daredevil, Luke Cage, and Iron Fist reportedly got canceled on Netflix (NFLX). Meanwhile, Hulu already streams Marvel’s live-action TV show called Runaways. Besides, Marvel also has TV shows such as Agents of Shield on ABC, Legion on FX, The Gifted on Fox, and Cloak and Dagger on FreeForm.
Disney is also working with Marvel characters on its upcoming Disney-branded streaming service called Disney+. Apart from Marvel, the Disney+ service will offer original content under Disney, Pixar, Star Wars, and National Geographic banners.
Disney is expected to continue investing in original content including movies and television to enhance this platform and further drive Disney’s SVOD (subscription video on demand) service. According to Future Market Insights, the global SVOD market is expected to reach $108.6 billion by 2026 owing to the growing number of people who use video streaming services.