Comcast, Disney move up deadline to decide Hulu future ownership
Comcast and Disney will begin discussions on the ownership of Hulu in September 2021, moving up the timeline from the original deadline of January 2024.
Topics
Posted 9/6/2023, 3:18:16 PM
cnbc.com
Relevant topic timeline:
Main topic: Disney announces price hike for Disney+ and Hulu, introduces bundle option and plans to address account sharing.
Key points:
1. Disney+ premium tier and Hulu ad-free plan will be raised by $3, with Disney+ costing $13.99 and Hulu costing $17.99 per month.
2. A new Duo Premium subscription will be available for $19.99, bundling both ad-free tiers of Disney+ and Hulu.
3. Disney plans to launch the $8 ad-supported tier in Europe and Canada in November and will address account sharing by implementing new policies in 2024.
Disney and ESPN are urging Spectrum cable customers to sign up for Hulu with live TV in order to regain access to ESPN and other Disney channels, following a dispute between Charter Communications and Disney Entertainment that has resulted in blackouts for Spectrum customers.
Comcast CEO Brian Roberts expects Disney to exercise its put option to acquire Comcast's minority stake in Hulu, with a likely valuation of just under $30 billion, and believes there will be significant interest from other potential buyers in an auction for the stake.
Comcast and Disney have agreed to expedite the sale of Hulu, with the proceeds being used for buybacks, according to Comcast.
Disney has experienced a 60% increase in Hulu + Live TV subscriptions since its carriage dispute with Charter began, offering a strategic option for Disney as it faces a threat to its annual affiliate fees from Charter.
Walt Disney Co. and Charter Communications have reached an agreement that restores Disney channels to Charter's pay-TV service, with Charter gaining the ability to offer Disney's ad-supported streaming apps and Disney programming having access to Charter's television service, preserving the cable bundle for now.