Home / Entertainment / Hulu Moves Show Disney does not take on Netflix, it takes on cable – The Motley Fool

Hulu Moves Show Disney does not take on Netflix, it takes on cable – The Motley Fool

Walt Disney (NYSE: DIS) does not own all Hulu, but controls the streaming company and two-thirds of its shares. It does so that Mouse House no longer needs to negotiate budgets with formerly similar partners Comcast (NASDAQ: CMCSA) which now owns about one-third.

If Disney buys the remaining parts now or sometime on the road, the company has clearly taken over Hulu leadership. It led to a major May 1 press event where the streaming company shared its content plans (with a large dose of Disney's Marvel) and some new advertising technology.

Hulus CEO Randy Freer also shared that his company now has 26.8 million paying customers. It is still only a fraction of the 1

50 million paying users Netflix (NASDAQ: NFLX) has, but it does Hulu the 3rd streaming player (probably No. 2 if you assume the most Amazon Customers Don't Use Prime Video So Much

  One person points to a remote control on a TV.

Disney can look to offer a viable alternative to the cable Image source: Getty Images

What is next for Hulu?

What was not said at the press event can be as important as what was announced. Not only does Disney own a controlling stake in Hulu, it also has its upcoming Disney + streaming service along with In addition, it is important to remember that Hulu is not just about its own shows and archive content, it also has a live TV offer.

Disney has already said the company will bundle all its services to a decade Because Disney + costs $ 6.99, ESPN + $ 4.99 and ad-supported Hulu without live TV cost $ 5.99 (total $ 17.97 for all three), it's about twice a $ 8.99 basic Netflix subscription costs. And since most Netflix customers are likely to pay the two-unit HD plan, which costs $ 13 per month, a discounted Hulu bundle can make the cost relatively close.

Hulu is not in advance if a potential bundle business is clapping. It adds a number of shows to attract new subscriptions, including two live-action Marvel series. These offers include:

  • Live action shows Marvel's Ghost Rider and Helstrom
  • Animated shows Marvel's MODOK Hit-Monkey ] Tigra & Dazzler Show, Howard Duck and a Special Event, Marvel's Offenders
  • Several Food Related Series from Vox Media Studios, David Chang's Majordomo Media and Chrissy Teigen's Suit & Thai Productions
  • Nine Perfect Strangers a series with Nicole Kidman
  • The Dropout a series based on the history of the pharmaceutical company Theranos, starring Kate McKinnon

Hulu also plans a new idea of ​​how it uses advertising, which includes launching a new ad format described as "nonintrusive" and is specifically focused on binge watchers. The new format "enables marketers to target binge viewers with an advertisement that is situationally relevant to their behavioral behavior," the company said in a press release.

The streaming company also plans to show ads when a viewer has paused a program that began in August. The Binge Advertising solution will be launched later this year.

What does Disney do?

Hulu's parent company strengthens the service to make it an important part of its bound offer. Together, Hulu's live streaming (ad-supported), Disney + and ESPN + options will soon be able to provide an integrated interface with a very cable-like offer price of approximately $ 57 per month (possibly less if a bundle is offered). Consumers can even add HBO or other premium channels and have that content also in the Hulu interface.

If Disney bundles its features, cable companies can respond by offering cheaper packages and collaborating with companies like Netflix (which has been open to working with their cable rivals). Big cable has been doing it until now because it becomes easy for their own customers to switch to a cheaper alternative. However, Disney can finally force an attitude change. If cable companies do not offer comparable packages, Disney can soon get an offer that is large enough to cause a whole new wave of cut.

Disney does not want to replace Netflix. It makes a deeper effort and tries to replace the cable. It's a big move, but the company has the products in place (or soon) to provide consumers with convenience, value and selection.

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