Bob Iger, the CEO of Disney, has stated that the company is considering selling Hulu, one of its successful streaming platforms, as a way of tightening the belt after pressure from activist investor Nelson Peltz and maybe also due to Hulu’s potential sale. In a recent earnings call, the company announced 7,000 layoffs and multiple franchise sequels, which had the streaming units concerned about their future. Iger praised Disney’s other streaming units such as FX and Hotstar but noted that the general entertainment streaming business is highly competitive with seven to eight platforms, and it’s not Disney’s strongest suit.
When asked about buying the other half of Hulu next year, Iger responded that he’s not going to speculate whether Disney would be a buyer or a seller of it. He added that the company would look at the matter objectively, considering the competitive landscape they are operating in and its concern over undifferentiated general entertainment.
“There are seven or eight platforms in the streaming business alone that are in general entertainment. That’s a tough business to be in competitively, and it’s not our strongest suit. I’m suggesting that isn’t necessarily the case,” Iger responded when asked about buying the other half of Hulu next year when the deal is up for negotiation. “I’m not gonna speculate about whether we’re a buyer or seller of it. I obviously have suggested that I’m concerned about undifferentiated general entertainment, particularly given the competitive landscape that we’re operating in, and we’re going to look at it very objectively.” Iger added.
Disney’s acquisition of Hulu is a result of its acquisition of 21st Century Fox in 2019. Currently, Disney owns 60% of Hulu, with the remaining 40% owned by Comcast. The deal for the remaining ownership of Hulu is set to be renegotiated next year, and it remains to be seen if Disney will opt to buy the remaining ownership or sell its current ownership.
Hulu, which was launched in 2008, has evolved into a popular streaming platform, offering a wide range of TV shows and movies. The platform has a large subscriber base, with over 40 million subscribers as of January 2021. With the increasing demand for streaming services and the growth of the streaming industry, Hulu has become a valuable asset for Disney. However, the company’s concern over the competitive landscape and its focus on tightening its belt has led to the consideration of selling Hulu.
In conclusion, Disney’s CEO, Bob Iger, has stated that the company is considering selling Hulu as a way of tightening its belt and reducing costs. The company’s concern over the competitive landscape and its focus on undifferentiated general entertainment has led to this decision. The future of this unit remains uncertain as the deal for the remaining ownership of the platform is set to be renegotiated next year. Whether Disney will opt to buy the remaining ownership or sell its current ownership remains to be seen.
This Hulu’s potential sale announcement can be a warning sign that our favorite content on the platform may be gone soon.
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