As part of a deal with cable TV conglomerate, Comcast, Disney agreed to assume full control of the video streaming service Hulu. It is no secret that Disney has plans of providing strong competition to Netflix for subscribers. To achieve this, the entertainment powerhouse has been constantly bolstering its on-demand video resources. The deal, which was announced on Tuesday, means that Comcast’s 33% stake in Hulu is to be purchased by Disney. The two companies also decided to collaborate in the funding of the purchase of AT&T’s 9.5% share. AT&T initially obtained this stake after its purchase of Time Warner (now WarnerMedia), which was responsible for a $583 million investment in Hulu during the year 2016. WarnerMedia is now planning to launch a streaming service, which aims to provide viewers with HBO content, in addition to various movies and shows owned by the company.
Disney began with an effort that saw all its content that existed on Netflix removed. The content, which includes entries from successful franchises such as Marvel and Star Wars, shows just how wide a library the entertainment giant possesses.
The streaming scene is currently dominated by Netflix, which boasts 149 million subscribers. Later this year, Disney intends to officially launch its streaming service Disney Plus, which is aimed at providing entertainment to children.
There are talks that suggest that the entertainment giant is considering a bundle type offering in which customers get access to other services along with Disney Plus. According to these talks, the idea is to offer Disney Plus in addition to ESPN Plus and Hulu. Disney Plus is also expected to be priced competitively at just $7 a month, which is cheaper than Netflix’s lowest price tier.
Netflix is certainly in a strong position currently, however, there is legitimacy and staying power behind the impressive catalogue of programs that Disney has under its belt.