Disney Completes Hulu Takeover Amidst Changing Streaming Landscape

The Walt Disney Company has announced its acquisition of Comcast's $8.6 billion stake in Hulu, thereby solidifying its ownership of the streaming service. Disney's own streaming platform, Disney+, reported a subscriber count of 146.1 million at the close of the second quarter this year, slightly down from nearly 158 million in the preceding quarter. In contrast, Disney's rival, Netflix, recently disclosed a nearly 11% growth in subscribers, totaling 247 million, attributed to measures such as addressing password sharing and introducing an ad-supported tier.

Netflix also adjusted the pricing of some of its subscription plans, potentially creating an opening for competitors like Disney. The streaming giant mentioned that its ad-supported offering was gaining traction, raising questions about the potential success of Disney's ad-supported tier, which could be clarified with the upcoming Disney earnings.

Additionally, the United States is facing an actors' strike, which has halted film and television productions, potentially resulting in a shortage of fresh content essential for retaining streaming subscribers.

Hulu, which operates on a subscription-based model, was established in 2007 as a collaborative venture between media companies like News Corporation, NBC Universal, and Disney. Disney CEO Bob Iger had indicated his intent to acquire the remaining shares of Hulu, emphasizing that Disney had been carefully examining the streaming service's business.

Disney is currently making substantial changes to its media operations, including the possibility of selling its ABC division and seeking a strategic partner for ESPN, with a goal to swiftly transition from traditional linear television to streaming.

The ownership landscape of Hulu has shifted in recent years, with its original owners like 21st Century Fox, Comcast, and Time Warner's former parent company CNN, focusing on their own streaming platforms.

Iger informed financial analysts that Disney's growth would be fueled by streaming, film studios, and theme parks over the next five years. The decline in Disney+ subscribers was primarily concentrated in India, where Disney lost rights to stream prominent Premier League cricket matches earlier this year.

Disney is set to announce details of upcoming streaming price hikes and introduce an ad-supported tier for Disney+ in parts of Europe and Canada.