Comcast plans to integrate Hulu’s SVOD service into X1 and Flex by the end of 2019 or early 2020, available to customers who have a Hulu subscription.īut NBCU can nix most of the licensing agreements by 2022, the companies said. Significantly, this transaction also affirms the value of our stake, provides a path to liquidity and ensures our continued equity participation in Hulu’s success.”Ĭomcast agreed to extend the Hulu license of NBCU content and the carriage agreement for Hulu’s live TV service for NBCU channels until late 2024 and also to distribute Hulu on its Xfinity X1 platform. The extension of the Hulu content-licensing agreement “will generate significant cash flow for us, while giving us maximum flexibility to program and distribute to our own direct-to-consumer platform, as we build that business. “We believe strongly in the direct-to-consumer space and our content is a key driver of that ecosystem,” Burke said in a statement. NBCU CEO Steve Burke called the Hulu deal with Disney “a perfect outcome for us.” The companies said that when the sale of NBCU’s stake occurs in 2024, Hulu’s fair-market value will be “assessed by independent experts.” By the same token, Disney can require NBCU to sell its interest to Disney for its fair market value at that time, the companies announced Tuesday.ĭisney has guaranteed a sale price for Comcast’s stake in Hulu that will represent a valuation for the streaming-video joint venture of at least $27.5 billion. As early as January 2024, Comcast can require Disney to buy NBCU’s interest in Hulu. For Disney, it was important to be able to present the deal giving it full control over Hulu for the Mouse House’s uber-upfront presentation to advertisers Tuesday in New York.Ĭomcast/NBCU will retain its 33% ownership interest in Hulu.
The agreement was clinched between Disney and Comcast very recently - and parts of the deal are still being hammered out, industry sources said.
With full operating control, Disney will have the latitude to set a new strategic road map for Hulu, including launching the service internationally. “We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” Disney chairman/CEO Bob Iger said in a statement about the pact.
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