Disney CEO may combine streaming assets, including Hulu in one app
To combine streaming assets, Disney would have to purchase Hulu outright from minority owner Comcast's NBC Universal
Streaming is far from dead, huge money being spent on great content: Former Disney exec
Candle Media founder Kevin Mayer assesses the state of streaming after David Zaslav issued a warning on profitability on 'The Claman Countdown.'
The next company that may combine all its streaming assets under one app could be The Walt Disney Co., if CEOBob Chapek gets his way.
Chapek made comments to that effect at Wednesday's Goldman Sachs investor conference.
Chapek said that "there’s a little bit of consumer friction" for streaming customers who want to shift between Disney’s family-focused and franchise content in Disney+ and the general entertainment content of Hulu or sports content on the ESPN+ app.
Viewers must toggle between different apps on their smartphones, televisions and other devices to watch content on each service.
DISNEY CEO REJECTS INVESTOR CALLS TO SPIN OFF ESPN
Disney CEO Bob Chapek speaking at an event. (Patrick T. Fallon/Bloomberg via Getty Images / Getty Images)
Placing all three services under one umbrella in a single app would reduce that.
The company has already experimented with such a model in Europe, where the Star streaming brand, which includes many shows that also air on Hulu, is already part of Disney+.
However, to do that Disney must take full ownership of Hulu, which is now one-third owned by Comcast Corp.’s NBCUniversal.
Toy figures of people are seen in front of the displayed Hulu logo in this illustration. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)
Under a 2019 agreement, Disney had the right to force a sale of Comcast’s stake at fair-market value, starting in 2024, with a floor valuation of $27.5 billion.
DISNEY TOPS NETFLIX STREAMING SUBSCRIBERS, ANNOUNCES PRICE HIKE FOR HULU AND DISNEY+
Chapek noted that sentiment has cooled significantly since the original agreement, suggesting a more modest payout.
Speaking at the same conference, Comcast Chief Executive Brian Roberts signaled Hulu would not come cheap and would seek market value for that minority stake, according to Reuters..
"Hulu's a phenomenal business," Roberts said, adding that it would attract multiple bidders if it were up for sale in its entirety.
Comcast Corporation Chairman and CEO Brian Roberts. (REUTERS/Thomas Peter / Reuters Photos)
Other media companies have been combining apps to simplify offerings.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 117.16 | -0.31 | -0.26% |
| CMCSA | COMCAST CORP. | 43.29 | +0.10 | +0.23% |
Warner Brothers Discovery said it would combine its Discovery+ service with HBO Max.
CLICK HERE TO READ MORE ON FOX BUSINESS
Paramount Global is considering combining its Showtime service with Paramount+, according to The Journal.
FOX Business' Chase Williams contributed to this report.