Does Disney want Hulu? Does it need Hulu? In a tricky economic environment, the fate of this small, but the somewhat compelling, streaming platform remains up in the air as both Disney and Comcast play their cards very close to their chests. Will we really see the deliberation go ‘down to the wire’ with the January 2024 deadline to decide its fate looming? Blake & Wang P.A’s Brandon Blake, our expert entertainment lawyer, breaks down the news from Disney itself.
The Differentiation Argument
While Disney’s Bob Iger was rich in praise for the platform, it’s clear he favors a return to keeping Disney rich in ‘highly differentiated’ content, whereas Hulu has a simpler, broader entertainment appeal. There are rumors that they’ve brought in Goldman Sachs to explore their strategic options for their Hulu stake. Yet Hulu also remains appealing to advertisers, a category Disney is keen to court, and has a solid and strong subscriber base with decent content.
In the meantime, we’ve seen Comcast suggest they would like to own Hulu outright- but many dismiss this as an attempt to drive up their stake price.
The Streaming Battle- Who Will Win?
Bob Iger was also quick to point out what is, fundamentally, a reality of the current streaming state. We have every platform promising to be firmly in the black by 2024/2025… but the reality is that not all of them will make it. Disney+ is, of course, well positioned to come out on top, with a strong and beloved brand and plenty of cash to throw at their growth cycle, plus their new ad-supported tier to grow. Will Hulu be necessary for them to gain more market prominence?
It’s the million-dollar question, literally. And we’re no closer to knowing which way the dice will fall. Still, time marches on, and with it the need to see a resolution to the matter. For now, we can only wait and see.
