Hulu is a well-known premium streaming service in the US that provides live and on-demand television and movies, with and without advertisements. Subscriber growth has risen year-on-year and so investors in Hulu stock understandably want a piece of the action.
In the second-quarter results, Hulu reported an impressive 32 million paying customers. One of the attractions for subscribers is that they can view two channels at once and keep track of their favorite shows and movies, in addition, Hulu is home to a vast library of award-winning original programs.
Who Owns Hulu?
Hulu does not have a publicly-traded stock. It’s a joint venture between Comcast and Disney. Since Hulu’s inception, there have been several ownership changes.
The Walt Disney Company bought 21st Century Fox (NASDAQ: FOX) in early 2019, giving Disney a 60 percent ownership in Hulu. Shortly later, AT&T (NYSE: T) repurchased its own 10% stake from Disney.
News Corporation ceded control to its subsidiary 20th Century Fox, ABC/Disney, and Time Warner assumed equity stakes, and Comcast acquired NBC Universal. In March 2019, Disney had bought a 30% holding in 20th Century Fox and a 9.5 percent stake in AT&T (through Time Warner).
The Walt Disney Company (NYSE: DIS) currently owns 67% of the company and has complete control over it. Comcast (NASDAQ: CMCSA) remains a silent shareholder with a 33% ownership.
On the other hand, Comcast declared that it would relinquish its 33% ownership in Hulu in the future; at fair market value by 2024. After that, investors will know Hulu’s market cap, but Disney values the firm at a minimum of $27.5 billion.
What is the Stock Symbol for Hulu?
Since Hulu is not a publicly-traded company, it does not have a stock symbol; however, since Disney (NYSE: DIS) and Comcast (NASDAQ: CMCSA) jointly own Hulu, you could use your trading platform to see how their stocks to see how they’re performing.
Why Do Investors Want to Invest?
Hulu, like Netflix, is changing the landscape of modern entertainment. They are simple to set up and use, with large expenditures in original programming and a “no cable” service that streams directly to smart TVs.
Hulu has attracted investors because of its 10.7 million American members in 2019 and 2020.
How to Invest in Hulu Stock?
Hulu is one of the most popular streaming services, and its business continues to grow. Although one cannot invest in Hulu directly, there are other ways to invest.
Invest in Disney
Disney (NASDAQ: DIS) offers a video streaming bundle comprising Hulu, Disney+, and ESPN+ for $12.99 per month. Disney+ has Disney, Pixar, Marvel, Lucasfilm (Star Wars), and National Geographic content.
Thanks to Marvel, Lucasfilm, Pixar, and movies, Disney now has many box office smash hits every year. When it comes to certain aspects of media production, it has a stronghold.
Between November 2019 and February 2020, Disney+ plus attracted 28.6 million subscribers in its first three months of operation.
Although Disney stock is costly, it is a popular choice among value investors. Something that might make it a good fit for investors hoping for a direct Hulu investment but ready to settle for an indirect one.
Invest in Comcast
Comcast Corporation (NYSE: CMSA) is a telecommunications giant that owns the Peacock video streaming service. As well as this, the firm owns NBC, Universal Pictures, Dream Works Animation, and several cable television networks, including USA, MSNBC, and CNBC.
In 2019, Comcast had 21.2 million television customers, 28.6 million internet customers, 11.2 million voice customers, and 1.37 million security customers.
Comcast is a multibillion-dollar corporation. On June 30, 2020, Comcast reported $9.252 billion in quarterly gross profit, $4.647 billion in quarterly operating income, and $23.715 billion in quarterly revenues.
Invest in Other Streamlining Services
Other streaming services are available for those who prefer what Hulu has to offer. Interested investors can currently invest in several well-established streaming providers. For example,
Netflix (NASDAQ: NFLX)
Netflix is the obvious pick, and it continues to be the frontrunner in this race for the time being. In the third quarter of 2020. Netflix dominated the market, with 73.08 million subscribers and 167 million worldwide.
AT&T (NYSE: T)
The HBOMax streaming service is owned by AT&T (T) through its Time Warner or Warner Media division. AT&T is an American telecommunications company. HBOMax and the HBO Cable TV network, according to Warner Media, have 36.3 million US members as of June 30, 2020.
CBS/Viacom (NASDAQ: VIAC)
ViacomCBS (VIAC) controls PlutoTV, a popular ad-supported free streaming service, and Paramount Plus, a subscription streaming service. In March 2020, Pluto had 24 million active users worldwide.
There is also the option of exploring investment opportunities elsewhere. The stock market is vast, which means that interested parties can find almost everything their imaginations can conjure up.
If investors desire a more significant risk with a higher reward, there are many stocks from emerging companies to choose from.
Similarly, they might look into dividend aristocrats and even dividend kings if they prefer something safer and more secure. If interested parties cannot find what they are searching for in stocks, they might look into other types of investments (for example, derivatives, real estate, etc.).
Will Hulu Hold an Initial Public Offering (IPO)?
An initial public offering (IPO) was planned in the past; however, it never happened. It’s also not likely to happen again in the near future.
The Wall Street Journal reported on June 21, 2011, that Hulu began “weighing whether to sell itself after receiving an “unsolicited offer.” Despite this, Hulu’s owners indicated in October 2011 that they would not accept any offered deals.
Hulu might be spun off to shareholders if Disney chose to; however, given how perfectly Hulu fits into Disney’s content strategy, this seems unlikely. Disney is unlikely to lose that revenue anytime soon as it expands its digital entertainment offerings through streaming platforms like Hulu and Disney+.
Although it is not possible to buy Hulu shares directly on the stock exchange, buyers can buy Disney (DIS) and Comcast (CMCSA) stock instead (CMCSA).