Hulu could also turn into a profitable business by the time 2024 arrives. The company is launching a new kids-focused streaming service called Disney Plus this year, and is likely to bundle that with Hulu and its sports service, ESPN Plus. But it will also be managing its own Disney+ streaming service featuring content from its wide array of owned properties from November this year.
Despite its popularity, Hulu has been losing money over the last few years.
According to CNBC, Comcast will hand over the keys to Hulu effective immediately, but will still retain shares in the platform. The company became the majority stakeholder in the streaming video service after it closed a deal for most of Fox's assets in March. Its owners have contracted as a wave of mergers consolidated the industry: The Walt Disney Co. absorbed 21st Century Fox's stake as it bought up Fox's studio and many of its networks, while AT&T sold off the share it inherited with the purchase of Time Warner, now renamed WarnerMedia.
Comcast owns roughly a third of Hulu.
Fair market value will be assessed at the time of sale, but Disney has guaranteed Comcast a minimum sale price of $27.5 billion for the remaining stake in Hulu.
Disney will split its TV shows and movies between two entertainment streaming services, Disney+ and Hulu.
Disney has already made clear that Hulu will be a critical part of its streaming strategy.
Disney is now the only one with its hands on Hulu's steering wheel. The service recorded $920 million in losses the year before. Indeed, just recently the Disney+ adaptation of High Fidelity moved from Disney+ to Hulu, realizing the Zoe Kravitz-led series would be a better fit on Hulu, and FX chief John Landgraf said during today's upfront presentation that he doesn't think FX shows belong on Disney+ at all. Either company can require the other to make the deal. "Disney expects Hulu will reach 40-60 million domestic subscribers in five years, suggesting 150 million global customers, based on a 33% domestic split", Bloomberg Intelligence media analyst Geetha Ranganathan says. It still lags far beyond chief competitor Netflix, which has almost 150 million subscribers globally, 60 million of whom are from the United States.