Hulu, LLC provides online television streaming services and allows users to access TV shows and clips, movies, including trailers and documentaries, and programs for kids. Hulu, LLC offers TV shows and movies through partnerships with various studios, including MGM, Sony Pictures Television, Warner Bros., and others.
Hulu, LLC with Live TV is available on most popular streaming devices, including Roku, Apple TV, Google’s Chromecast, and Amazon Fire TV, along with the Xbox 360, Xbox One, and most recently, the Nintendo Switch. Hulu with Live TV is supported on the web by Firefox, Chrome, Microsoft Edge and Safar, on iOS and Android devices, including Amazon’s Kindle Fire tablets.
Hulu is structured to source revenue through on-screen advertising, premium Hulu Plus subscriptions, and Hulu’s live TV services. In 2018, the company’s advertising revenue increased by 45%, with an advertiser base of around 50% from 2017, and the average time subscribers spent on Hulu has increased by 20%. At the end of 2018, Hulu had around 25 million subscribers in the US. The company also increased the number of on-demand library and original programming TV episodes to more than 85,000 episodes in 2018. These include popular television series like The Good Doctor, Killing Eve, The Orville, Superstore, and Grown-ish and other popular series.
Consumers are increasingly opting for services such as Netflix, Hulu, and other over-the-top (OTT) live TV services, which allow them to access smarter options as compared to traditional TVs. TV’s share of total media ad spends in the US dropped and advertisers are focusing on revising marketing plans. Focus on targeting platforms and channels where consumers are currently devoting the majority of their attention has also been increasing.
Recent Developments & News:
- Along with a 10% stake owned by WarnerMedia, Hulu is owned by Disney, 21st Century Fox, and Comcast, which have a 30% stake respectively. Disney is set to take 60% control of Hulu in early 2019 when it completes its US$ 71 Bn acquisition of most of Fox’s assets.
- In 2018, its parent company invested an additional US$ 1.5 Bn in the company (up from US$ 1 Bn as compared to last year)
- In December 2018, Hulu and Funimation Productions, LLC – subsidiary of Sony Pictures Entertainment Inc. – announced a multi-year partnership to offer access to internationally popular anime content. Through this deal, the company is expected to expand its anime collection with new subtitled and dubbed titles.
- According to data published by Comcast and 21st Century Fox in 2018, Hulu losses were US$ 440 Mn during the third quarter and US$ 357 Mn in Q2 of 2018, and over US$ 207 Mn a year earlier
- In September 2018, Discovery Inc. and Hulu LLC began working jointly to bring five Discovery networks — Discovery Channel; TLC; Investigation Discovery; Motor Trend; and Animal Planet to the streaming service.
- In May 2018, With the objective to continue to develop ways to expand the margins of the virtual pay TV component of its streaming service, Hulu announced that it is introducing dynamic ad insertion (DAI) into its live TV service.
- In August 2016, Yahoo launched a new TV-watching site in partnership with Hulu LLC
- In November 2016, Hulu acquired Video Genome Project to enhance recommendations for Live TV and VOD
- In October 2015, Hulu and Viacom Inc. renewed and extended their partnership to grant exclusive subscription Video on demand (VOD) rights to select top-rated series from Nickelodeon, Comedy Central, and MTV
- In January 2019, Hulu unveiled a new pause ad experience, which provides a non-interfering, viewer-initiated ad experience that is both appreciating for viewers as well as brands
- In January 2019, Hulus offered no ads plan with on-demand TV and movies for US$ 11.99 per month, and Hulu + Live TV for US$ 44.99 per month.
- In January 2019, Hulu announced a US$ 2 price drop for the basic ad-supported plan from US$7.99 to US$5.99 per month.
- In 2019, Disney is set to take the majority of 60% ownership in the company, through the acquisition of 21st Century Fox’ assets. In addition, AT&T’s WarnerMedia is reportedly looking to sell its 10% stake in the company, while Comcast owns the remaining 30% stake.
The company is focusing on balancing its subscriber base, expanding its premium advertising offerings, adding longer hours of content, producing award-winning original series, and expanding its regional footprint in the live pay-TV space.
Hulu LLC is expected to focus on premium content targeted towards adults, while the upcoming Disney+ service will be aimed at kids and families. Disney is planning to increase its investment in Hulu programming and also is looking to expand internationally.
Hulu Statistics: Fun Facts
- As of 2020, there are 3.3 Million Hulu subscribers
- Hulu is only available in the US and Japan
- Users can customize subtitles and other components on Hulu
- Hulu shows 43 different video ads to users each month
- According to a study by online-streaming guide Reelgood, US, Hulu offers the most “quality” shows as compared to Netflix, Prime Video, and HBO in the US
- In 2018, Hulu’s focus on improving live streaming technology resulted in the reduction of buffering time by 90%
- According to company news, subscribers of Hulu with Live TV spend almost 50% of their time watching VOD or recorded programming
- Hulu received 27 Emmy nominations in 2018
- The company has the highest percentage of cordless viewers of around 49%, and total OTT viewing time spent is 86 hours
- According to Statista, the company’s revenue in 2017 was US$ 2.4 Bn
- According to CNBC, Hulu added more domestic subscribers than Netflix in 2018 in the US, and the company recently announced that it added 20 Mn US subscribers in 2018
- According to data published by Hulu in 2018, the average time spent on Hulu by each subscriber had grown by 20% every month in that year
- As per data published by comScore – American media measurement and analytics company –the median age of a Hulu viewer is 32, and the average annual household income of a Hulu viewer rose to US$ 93,000 in 2018
- In 2018, Hulu’s advertising revenue was around US$ 1.5 Bn, which was an increase of over 45%