Hulu is co-owned by the Walt Disney Company (DIS), Comcast (CMCSA), and AT&T (T), with Disney holding 60% in Hulu (30% acquired from Fox), Comcast’s NBCUniversal holding 30%, and AT&T’s WarnerMedia holding 10%.
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Disney to boost Hulu
Disney has plans to target adults with Hulu’s content. Hulu is already making four adult animated series under Marvel Studios featuring Marvel superheroes. Apart from this endeavor, Hulu is expected to continue to stream content from broadcast networks and original series such as The Handmaid’s Tale and Castle Rock.
Disney is focusing on enhancing Hulu’s service with premium content to grow its subscriber base, expand internationally, and combat streaming rivals such as Netflix (NFLX), HBO Now, and Amazon (AMZN) Prime. On April 11, Disney predicted that Hulu’s total number of subscribers would hit 40 million–60 million by fiscal 2024, up from 25 million subscribers in fiscal 2018.
Hulu to post profits
Apart from expecting it to gain subscribers, Disney also expects Hulu to generate profits in the United States (SPY) by either fiscal 2023 or fiscal 2024. According to the Securities and Exchange Commission filings made by Hulu’s owners, Hulu lost nearly $1.5 billion in fiscal 2018, much higher than its loss of $920 million in fiscal 2017. Hulu is also expected to lose $1.5 billion in the current year.