CFO: Comcast Wants ‘Healthy’ Relationship with Hulu

Hulu, the subscription streaming video service and online TV platform co-owned by Disney, Fox, Comcast and WarnerMedia, is valued by its corporate parents at more than $9 billion – despite posting hundreds of millions of dollars in equity losses.

Disney’s pending close of its $71 billion acquisition of 20th Century Fox Film, which includes Fox’s 30% stake in Hulu, will make the media giant majority owner going forward.

With WarnerMedia revealing a desire to sell its 10% Hulu stake, that leaves Comcast as a minority stakeholder to Disney’s vision for the 11-year-old over-the-top video platform going forward.

Speaking on last month’s fiscal call, Disney CEO Bob Iger said the company planned to incorporate Fox’s television production to up original programming at Hulu.

“We feel [that] will enable Hulu to compete even more aggressively in the marketplace,” said Iger.

Meanwhile, Comcast reported a $132 million equity loss at Hulu for the fiscal period ended Sept. 30 – up from an equity loss of $62 million during the previous-year period. Through nine months Hulu generated a $370 million equity loss for Comcast – more than double the cabler’s $168 million equity loss last year.

Speaking Dec. 4 at the UBS 46th Annual Global Media and Communications confab in New York, Comcast CFO Michael Cavanagh reiterated the company’s support for Hulu and belief that “some form of direct-to-consumer” product “will make sense for us.”

Whether that includes Hulu remains to be seen. Cavanagh wouldn’t offer any insight on possible changes in management’s mindset, saying only that the platform remained a good home for select NBC Universal programming.

“We want to continue to have a healthy relationship with Hulu,” he said. “We think much of our content finds a great home on that platform. And one way or the other, we want to make sure we have a good and healthy and constructive for everybody ongoing relationship with Hulu.”

 

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