Disney & Comcast Agree Deal on Hulu's Future

Having dominated the theatrical market/box office in recent years (and many more to come), Disney are now shifting their attention to the biggest consumer trend seen this decade – streaming. Launching ESPN+ in 2018, and with Disney+ on the horizon, many believe the company is moving to dominate the market like they do traditional cinema. Now Disney have moved a step closer to securing their status by taking full operating control of Hulu.


Announced on Tuesday, Disney and Comcast agreed a deal for Disney to take full operating control of Hulu effective immediately. Although Comcast still have a 33% stake in the streaming service, they have agreed a deal with Disney which looks to benefit both companies. Here is a breakdown of key aspects from the deal: 
  • Either company can enforce the sale/purchase of Comcast’s remaining stake to Disney from January 2024.
  • NBCUniversal will continue to licence content to Hulu for the next 5 years (although they can start to pull most of that content from 2022).
  • Comcast can start to exhibit content currently exclusive to Hulu on its own service from 2020.
  • Comcast is guaranteed at least $5.8bn if/when they sell their stake in Hulu, even if Hulu’s value decreases.
For Disney, this deal represents a major step in fleshing out their streaming business. With now full ownership/control over Hulu, Disney can now bundle the service with ESPN+ and/or Disney+ to create truly unique direct-to-consumer offering. More and more competition for streaming services mean consumer will eventually have to choose which service is worth their money, and Disney hold a strong advantage over most competitors. With Disney+ (children & family), Hulu (adult & mature audiences), and ESPN+ (live sports), Disney will be able to provide a bundle of all its services at one price, meeting the needs of the entire household through different types of content.  

Comcast on the other hand will still have a significant revenue stream through Hulu (for their licenced content), whilst allowing them shift their full efforts towards their own streaming service (expected to launch next year). Comcast have said they will be taking a different approach to their service, one that integrates ads, live TV and more. With a library of beloved content built up over decades, and their news, sports and other TV offerings, Comcast can use this 5 year period to solidify its place in the streaming market.

This deal between two of the industry’s most powerful forces if yet another signal of the significant role streaming will play in both companies future, all be it in different ways. With both Disney and Comcast set to launch streaming services in the near future, this deal is a necessary step in their wider plans.

You can read Disney’s full press release here.

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