Disney's officially set to challenge Netflix and Amazon in the streaming world.
Disney's already unveiled plans to launch their own streaming service, Disney+, which they planned on challenging streaming giants with. Now, they've made a power move on their way to rival Netflix and Amazon. Disney announced that they've struck a deal with Comcast and will take "full operational control" of Hulu immediately. Comcast's deal with Disney over Hulu values the streaming service at $27.5 billion U.S. which Comcast will be allowed to sell in 2024, even if the streaming service is worth less than that. Comcast ultimately gets at least $5.8 billion for its stake in Hulu, per their agreement.
On Disney's end, they'll have to pay Comcast for the Hulu content over the next five years. NBCUniversal, CNBC’s parent company, will be able to stream the same content on its streaming service which is expected to launch next year. NBC channels will be on Hulu Live for a high rate.
“Hulu represents the best of television, with its incredible array of award-winning original content, rich library of popular series and movies, and live TV offerings,” Disney CEO Bob Iger said about the deal. “We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers.”