Even Wall Street is sitting up and taking notice of the question marks hanging over Hulu and the buyout that must happen on one side by early 2024. Do either Comcast or Disney really need Hulu? Is there a middle ground to hit? While everything remains very much up in the air, our resident expert entertainment attorney from Blake & Wang P.A, Brandon Blake, takes a look at all thoughts.
The Disney Shakeup
The return of Bob Iger to the Disney helm certainly throws a wrench in any previous predictions about Disney and Hulu. It’s clear he wants to return to building core Disney brands, like Marvel and Pixar, and put some focus back on their kid’s entertainment. Is a generic adult brand a boost for those plans, or just some split focus? They’re being coy for now, as we can expect with a multi-billion dollar deal looming soon. Should Disney bite, they can expect to part with at least $9B- which may be too much in the current landscape.While the previous leadership were hot on the integration of Hulu and its prospects, now they seem much more ambivalent. Comcast is likewise keeping its cards close to its chest.
A Third Way
It’s true that there’s not really a third logical party to offload Hulu onto, other than Disney and Comcast. And while Hulu’s subscriber numbers are less than a third of Disney+, their average revenue per user came in at nearly double that of Disney+. There’s also a strong argument that, behind Netflix and YouTube, it’s the No 3 streaming service in the US for time spent connected. Yet Hulu has very little content that makes it to the most watched lists.
Disney could potentially put ESPN on the table for a deal, which actually carries a lot of logic, solving issues for both businesses. But Disney seems reluctant to lose the sports-streaming platform. Could we see a renewed partnership restructure instead? While it’s an outlier scenario, it’s gained some strength with Wall Street of late, with a 50/50 venture being tabled as an idea.
For now, it remains up in the air. But we need some clarity soon- that deadline is looming fast.
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