Hulu is an American VOD (video on demand) service which can be subscribed in order to watch and was founded in 2006. This service comes second to its popular most VOD counterpart, Netflix. Hulu basically had its subscribers divided into two tiers: paid and free and used to stream television series which its partners owned. But it was facing huge loss because of the growing popularity of its opponent. So, recently a change rather an inclusion occurred in the ruling seat of the service which will hopefully boost its performance. Let us check the details.
The New Partner
Previously, Disney, NBC Universal of Comcast, 21st century Fox were the partners of this company. Now, a new name is getting added, Time Warner, who after a lot of discussion has agreed to buy a stake of 10% in spite of knowing the loss that this online TV service suffers. The cost of this stake was $ 580M.
This inclusion points out that in next year i.e. 2017, Hulu is thinking of starting a new pay TV service, in which Warner’s channels like CNN and Turner will take an active part. It is expected that this step wished to be taken by Hulu will prove to be beneficial for them.
The Credits
When Hulu was tied with its previous partners; they had the right to stream the shows that those owners own networks aired. Now with Time Warner joining the crew, they can infuse the money to attract and air more shows and can try to put up a strong challenge for Netflix. They can extend their service to more people and mend their flaws with the help of the money power that Warner has. This inclusion is regarded as a good strategic move with which, Hulu will be able to say hello to some profits.
