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Disney wants to be in control of Hulu

We know that everybody watches movies and series from the comfort of their own couch these days.

And that streaming platforms like Netflix, Amazon Prime and Hulu allow us immediate access to those movies and shows.

Last February Netflix swept the Oscars, but the live streaming service giving us something to talk about now is Hulu.

And not for the reasons you’d expect, but becasue of possible changes in investors that would affect its content and its subscribers.

Hulu currently has 3 bosses: Disney, Fox, and Comcast. Each hold 30% percent of Hulu.

The additional 10% is held by WarnerMedia, a smaller partner owned by AT&T.

But Disney is already in negotiations with Fox to buy its share, and also plans to buy the 10% held by WarnerMedia, giving it a majority share
of 70% of the platform, which would make them the only company in control of Hulu.

Why is Disney looking at Hulu?

From the beginning Hulu has been unique, starting with its creation as a joint venture between three major media companies (Disney, Fox, and Comcast).

This uniqueness has resulted in a varied and interesting platform with content from ABC, FOX, and NBC. The platform also has approximately 12
million subscribers.

But if Disney gains the majority share of Hulu, it could potentially change the content.

For one thing, the options of movies and series would change. Hulu could have exclusive content from Disney and Pixar, though the company has previously announced plans to launch its own live-streaming platform.

Disney, Marvel and Lucasfilm are currently available to stream on Netflix, but according to the contract, this will end in a few years.

It seems the only way to access the content of the entertainment giant will be through services that they control.

Even though this sounds like an ambitious plan for Disney, it’s a big risk to have greater or total control of Hulu becasue the platform loses money.

According to reports last year, teh compnay lost $1.5 billion dollars.

For Fox and Comcast this is bad news. However this does not seem to discourage Disney’s investment interests for obtaining the live-streaming service.

Possible future for Hulu

After Disney finishes negotiating with Fox and obtain 60% of Hulu, the company plans to discuss with the Hulu team what opportunities exist abroad and what content is a viable investment.

In short, changes are coming to the streaming platform.

One possible outcome is for Disney to use the service to boost its original content internationally.

This might be good news for Latin America as we could enjoy exclusive and original content not only from Disney and Pixar, but also from Disney Marvel and Lucasfilm.

Another possible outcome is that Comcast, the company that holds the remaining 30% of Hulu, will reach a legal settlement that prohibits Disney from making radical changes to the platform, thus leaving the service much as it is now.

There is also another, darker possibility for Hulu’s future.

After obtaining 70%, Disney could let everything run its course, allowing contracts with media companies to end and the platform to shut down.

This would leave Disney’s own streaming service as the only place where you could see its content, forcing consumers to subscribe to the service.

So what should subscribers expect? We will just have to wait and see.

What is certain is that Disney isn’t hesitating, and has already shown us that it plans long-term strategies.

We hope Disney surprises us with a unique streaming service, and that its content is something we’ve never seen before.

Because in the end, all we want is to be able to watch movies and series from the comfort of our couch.


Sources
www.theverge.com
www.cnbc.com
www.businessinsider.com