Disney acquires a 30% stake in Hulu
With the closure of its 21st Century Fox (or 21CF) acquisition yesterday, Walt Disney (DIS) received a 30% stake in Hulu. Before the acquisition, 21CF, Comcast (CMCSA), and Disney each had a 30% stake in the online video service, and AT&T’s (T) WarnerMedia had a 10% stake.
The acquisition gave Disney a 60% stake in Hulu, which could help it expand in the streaming space. Disney also has plans to launch a Disney-branded direct-to-consumer streaming service to compete with Netflix (NFLX) this year. AT&T, Comcast, and Apple are also set to soon debut video streaming services.
Disney focuses on boosting Hulu’s subscriber base
Disney aims to enhance Hulu’s service with premium content to grow its subscriber base and compete with streaming rivals such as Netflix, HBO Now, and Amazon (AMZN) Prime. In February, Disney agreed to bring four animated series from its Marvel Studios to Hulu, and Hulu has slashed its basic ad-supported monthly subscription rate to boost its subscriber base. Disney is planning to offer a discount to customers subscribing to all three of its three streaming services, ESPN+, Disney+, and Hulu. Hulu had a subscriber base of 25 million last year.