Here's Why Hulu Is Down $357 Million

This loss is due to Hulu investing in content and technology to reach new subscribers.

Hulu’s losses have doubled in Q2 2018, equaling £357 million, as the video-streaming company continues its push in investing in content and technology to reach and obtain new subscribers. Variety reports that in Q2 2017, Hulu’s loss was “about £173 million,” and were “primarily due to higher programming and marketing cost.” As of May 2018, Hulu has around 20 million paying subscribers and about 800,000 of those have paid for their live TV service.

This is a jump of about “18% from the end of 2017.”

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With the ever continuing mission to increase that 20 million subscriber count, “Hulu’s parents – Disney, Comcast/NBC Universal, 21st Century Fox and Time Warner – have been pumping more money into the venture, with regulatory disclosures indicating they’re collectively putting in £1.5 billion this year.” Last year, these companies invested around £1 billion, so these numbers are on the rise as well. On August 7, CEO Bob Iger said, during an earnings call, that as part of its deal with 21st Century Fox, Disney will be acquiring its 30% share of Hulu, which will give Disney a majority stake at 60%.

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“Hulu will fit in very significantly to our app strategy,” Iger said.

He had previously noted that Hulu will be the platform that targets the adult audience, while their upcoming Disney streaming service will be geared towards a younger demographic and reportedly won’t include R-rated content. Iger also mentioned that all of these streaming services may be available as a bundle at some point, but they “want to be able to offer that kind of flexibility” to give consumers the power and choice to pick what they ultimately want. At of the end of July, the £71.3 billion Disney/Fox deal took one major step closer to be completion. With the deal ever looming, however, Fox has said they intend to keep The Simpsons after the deal, and will do all they can for the foreseeable future.

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Adam Bankhurst is a news writer for IGN who finds all this very fascinating and can’t wait to see the aftermath of this mega-deal by Disney and Fox.

You can follow him on Twitter @AdamBankhurst.

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