What you need to know about the $9 billion online video streaming deal between Hulu and Disney and Hulu Plus
Hulu Plus will begin streaming online videos on Friday, allowing viewers to view Disney and Disney Channel programming without having to purchase a TV or streaming device.
Hulu’s deal with Disney and its streaming partner Disney XD marks the biggest new deal between the streaming video giant and a traditional cable provider in years, bringing in more than $9.4 billion in revenue for Hulu and another $1 billion in profits for Disney.
It marks the first time a major video streaming company has signed a multiyear deal with a cable provider.
Hover and Disney have long been allies.
They collaborated on Disney XD, and Hulu has partnered with Disney XD on live TV.
But the deal comes amid a global industry shift away from traditional pay TV toward online streaming.HULUL’s $9B deal with ESPN was announced in July.
It includes the Disney XD network, a Disney-owned channel that also includes a Disney Channel and a number of Disney properties.
The agreement will also include Hulu Plus, Hulu’s premium service that offers Hulu Plus access to Disney channels, including Disney channels.
The company also will begin offering its Hulu Plus channel to consumers who subscribe to a cable or satellite service.
Hudson TV, Hulu Plus’s biggest competitor, also signed a $1.9 billion deal with Comcast last year.
Hulu Plus has struggled to maintain its subscriber numbers.
It has about 8.4 million subscribers, according to ComScore.
The Hulu deal is the latest in a series of deals for video streaming giants to enter the online video market.
Netflix, Amazon Prime Video and Hulu are among the biggest players in that space.
Comcast and Disney’s $2.9B pact with Disney for Hulu Plus is the largest new deal in the history of the video streaming industry.