Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Twenty-First Century Fox Inc (FOX), The Walt Disney Company (DIS): Unlocking the True Value of This Online Video Provider

What now?

As Disney Chairman and CEO Robert Iger said “This thing could really turn out to be something big.” Hulu’s future looks bright with the new capital investment and aligned management. It is expected that Hulu will boost its content offering and enhance its paid service to keep up with strong competitions from Netflix and Amazon.

The company is also planning to turn Hulu into an industry-wide “TV Everywhere” service, the concept that cable and satellite subscribers should be able to stream shows and channels whenever and wherever they want. “TV Everywhere” could provide broader on-demand access to hundreds of television shows that are hard to find online now. Hulu could be the key to make this “TV Everywhere” concept work as content programmers and distributors have struggled. For this reason, it makes sense for current owners of Hulu to have Time Warner Cable come aboard to expand Hulu’s ecosystem.

Take away

With Twenty-First Century Fox Inc (NASDAQ:FOX) and Disney’s better aligned interest, Hulu could be aiming for something big with its “TV Everywhere” concept. Upon the progress of “TV Everywhere” concept, both 21st Century Fox and The Walt Disney Company (NYSE:DIS) will benefit significantly as entertainment and content providers while Comcast, as a cable operator, can better leverage into the new streaming ecosystem. For now, not selling Hulu is a sound decision for its current owners. More gains are expected to be realized from Hulu in the long-term by 21st Century Fox, Disney, and Comcast.

The article Unlocking the True Value of This Online Video Provider originally appeared on and is written by Nick Chiu.

Nick Chiu has no position in any stocks mentioned. The Motley Fool recommends Netflix and Walt Disney. The Motley Fool owns shares of Netflix and Walt Disney. Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.