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.
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 Fool.com 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.
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