Emmanuel Ochayi
Walt Disney Company unveiled its acquisition of Comcast’s remaining $8.6 billion stake in Hulu on November 1. This maneuver signifies Disney’s firm commitment to bolster its presence in the competitive streaming landscape.
“Today’s acquisition will further Disney’s streaming objectives,” announced the company in a press release, emphasizing its relentless pursuit of expanding subscriber numbers for its Disney+ streaming service.
Join our WhatsApp ChannelThe deal values Hulu at $27.5 billion, with a swift transaction conclusion scheduled for December 1, according to Disney. This marks the final phase in Disney’s takeover of the popular streaming platform.
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Disney’s California headquarters has been actively promoting Hulu as part of bundled offerings, seamlessly integrating it with Disney+ and ESPN+ platforms, strengthening its position in the streaming market.
With the upcoming release of its latest quarterly earnings next week, the industry eagerly anticipates insights into how Disney’s cable and streaming television services are faring amidst fierce competition.
Notably, in August, Disney+ reported a loss of over 10 million subscribers in the concluded quarter, primarily attributed to challenges in the Indian market. Disney+ concluded the last quarter with 146.1 million subscribers, compared to just under 158 million in the prior quarter.
This move comes on the heels of Netflix’s announcement that its subscriber base surged nearly 11 percent to 247 million in the previous quarter, thanks to efforts to curb password sharing and refine an ad-supported tier. Netflix’s price hikes on select plans may open up opportunities for competitors like Disney.
Furthermore, Netflix reported that its ad-supported offering was gaining traction, and Disney’s forthcoming earnings report should provide valuable insights into the performance of its ad-supported tier.
In the background, a labor strike within the United States has temporarily halted productions in the film and television industry, potentially leading to a dearth of fresh content that streaming services rely on to attract and retain subscribers.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
