Disney (DIS - Free Report) with its upcoming streaming service Disney+ and its acquisition of the majority stake in Hulu, following Twenty-First Century Fox’s (FOXA - Free Report) buyout, is looking to challenge Netflix’s (NFLX - Free Report) dominance in the streaming space.
Hulu added more domestic subscribers than Netflix in 2018. While Netflix added about 3.7 million subscribers in the first three quarters of 2018, per CNBC, Hulu recently announced that it added 8 million U.S. subscribers in 2018, bringing the total count to 25 million. Hulu attributed the subscriber gain to its content strength.
Notably, Hulu is jointly owned by Disney (30%), Fox (30%), Comcast (CMCSA - Free Report) (30%) and AT & T (10%).
Additionally, Hulu received 27 Emmy Award nominations in 2018. The company’s original series The Handmaid’s Tale received a total of 20 nominations.
Hulu’s exclusive content offerings like ER, Lost, Bob’s Burgers, and 30 Rock are also helping it attract and engage subscribers. Per research firm 7Park Data, 89% of Hulu subscribers first watched licensed programming before watching original content. Moreover, Hulu noted that the average time spent on the platform increased 20% in 2018.
Hulu May Expand to International Markets
In its fourth-quarter fiscal 2018 earnings, Disney’s CEO Bob Iger stated that the company will continue to invest in Hulu’s programming after the acquisition of the majority stake.
Additionally, Iger stated that the company plans to expand Hulu’s presence internationally and add more licensed content from international markets to its portfolio.
Moreover, he mentioned that Hulu will continue to host more “adult-oriented series, classic television shows, and exclusive Fox offerings” and may not include Disney’s content. However, Hulu continues to incur losses due to higher investments in programing.
The Walt Disney Company Revenue (TTM)