June 18, 2019
With Disney agreeing to acquire Comcast’s 33% stake in Hulu, the subscription streaming video service with 28 million subscribers is now under the direction of one company instead of four (Disney, Fox, Comcast, WarnerMedia).
In an interview with CNBC, Hulu CEO Randy Freer said consolidation among the platform’s corporate owners offers increased clarity on the service’s objectives, strategic planning and voice going forward.
“We’re super excited about the opportunity,” Freer said.
The executive added that Disney’s plan to incorporate Hulu, ESPN+ and Disney+ into a possible SVOD bundle sold to consumers and distributors offers additional opportunities.
“I think it’s another way for Hulu to extend and grow its already fast-growing subscriber base,” Freer said.
With Hulu the only major SVOD service streaming advertising on its basic subscription plan, Freer said marketers are looking for consumer access in over-the-top video ecosystem dominated by ad-free players Netflix and Amazon Prime Video.
“I think the opportunity at Hulu … with huge audiences … long engagement times, a young audience, 20-to- 25 years younger than network television … is a huge for brands to come in and talk to the consumers that they’re looking to reach the most,” he said.
At the same time, Freer cautioned that marketing Hulu as a service with half the ads of broadcast TV is not “okay anymore.”
“We have to find new ways to integrate brands into the ad,” he said.
Indeed, Hulu has launched a number of new ad formats, including “pause ads,” which displays a static ad when a viewer pauses programming; and “Friends with Benefits” featuring “Easter eggs” hidden on the site that offer special deals from brand partners when clicked.
“There [are] all kinds of ways to make the customer experience on Hulu better than any of our competitors,” Freer said. “And we can’t forget that the most important thing to consumers is choice. What’s more important is giving them the option of an ad service and the option of an ad-free service so they can determine what’s the best experience to view things.”