The video streaming and on-demand video market is teeming with companies. Some of the large players in the market are Netflix, Amazon Prime Video, Hulu, and Disney+. Hulu is one of the fastest-growing streaming and live-TV service that’s managed by Disney. Hulu is a strong buy observing its past trends. So, how do you buy Hulu Stock? What can you expect with the stock in the future? And is it a good investment? We will talk about all of this and much more.
Background on Hulu
Hulu is an on-demand video service similar to other companies in the market. The company is currently present in Japan and the United States with plans for global expansion in 2021. Hulu was open to the public on March 12, 2008. Walt Disney owns the majority shares of Hulu. The company is fully managed by Walt Disney.
Currently, Hulu focuses on original content from NBC, Fox, ABC, and Food Network. It also hosts classic collections like the Utopia Falls, The Handmaid’s Tale, Seinfeld, and High Fidelity. It also offers some older shows from CBS. Hulu focuses on original TV shows over movies and documentaries.
As of Dec 2019, the company had 30.4 million paid subscribers, an increase of nearly 5 million subscribers from the previous period. However, the company is still far behind the industry leader Netflix that had 167 million subscribers during the same period (with 60 million subscribers in the US alone).
Hulu offers its services in various subscription tiers. The Basic plan cost $5.99 P/M, Premium costs $11.99 P/M, Basic + Live TV costs $54.99 P/M, and Premium + Live TV costs $60.99 P/M. The Basic plan comes with ads, while the Premium is ad-free. Former CEO of Disney Robert Iger predicted that the company will post profile by 2024 and reach an audience of 40 million subscribers.
Main Competitors of Hulu
Netflix and Amazon Prime Video remain the two biggest competitors of Hulu. Let’s observe the market share and offerings of each of these companies.
With an audience in 190 countries and 167 million paid subscribers, Netflix is the biggest player in the on-demand video streaming market. Netflix began its operations in 2007 and has some of the massive hit original content like The Witcher, Stranger Things, Narcos, Orange Is the New Black, and House of Cards. The company also invests in regional originals and has had great success in some countries. Netflix subscription is available in three tiers – Basic at $8.99 per month, Standard at $12.99 per month, and Premium at $15.99 per month.
Amazon Prime Video
Amazon Prime Video is a subsidiary of the online retail giant Amazon.com. Like Netflix, the company also offers video streaming services. It offers viewers will blockbuster movies and original shows. Amazon integrates its video streaming service with its Prime shipping service. Video-streaming is offered as a standalone service or as a part of its fast and secure shipping service. The Prime shipping service including video streaming comes at a subscription rate of $119 annually.
Users who only subscribe to Prime Video can get it at £5.99 per month in the UK and $8.99 per month in the US.
Future of Hulu
Disney has fully integrated Hulu in its management that’s an indication that the IPO may never happen. Instead, Disney wants to use Hulu to drive its own stock prices. Currently, Disney has two online video streaming services under its wing – the Disney+ and Hulu. While Disney+ is similar to other service providers, Hulu is different. It provides the option to watch the service with ads but a low subscription fee. Something the other service providers do not offer. This is a strong point of Hulu.
Netflix cannot go the with-ad route because it’s listed in the stock exchange and such a decision would have a huge impact, the company has over 160 million subscribers. This allows Hulu to target the lower segment of the market and a higher chance of making a profit per subscriber.
Hulu IPO Launch
In 2010, it was expected that Hulu would go public, but that never happened. At the time, the New York Times obtained information from inside sources that the company would go public valued at $2 billion. However, that never happened. Nevertheless, you can still own Hulu shares.
How to Buy Hulu Stock
Although Hulu is not a public company, at least not yet, you could still be a part of the action. Disney owns much more than Hulu. Besides Disney+ that’s home to some great shows, Disney also owns ESPN+ with 7.6 million paid subscribers. Hence, by purchasing the shares of Disney, you have a chance of making a profit from the rise of Disney+, Hulu, and ESPN+, all promising video streaming franchises.
Hulu makes up only a small portion of the entire Disney share, but by investing in Disney you are betting on a rapidly growing company that’s survived through tough times and has come strong. Here is a small guide on how you can buy Hulu stocks.
To by Hulu stocks, you must first choose an online broker. There’s plenty of options, you could go with Tradestation, Webull, or TD Ameritrade. All these brokers offer commission-free trade so you do not have to worry about the extra price. After securing the trading platform, look for DIS on NYSX (New York Stock Exchange). DIS is the stock ticker symbol of Disney on NYSX. After identifying the share, you can purchase it.
As the Hulu stocks are not exclusively available, you will have to buy the Disney stocks which include Hulu in a small proportion. When investing in Disney aim for the long-run as day trading will not provide the same rewards. Online video streaming and video-on-demand have great potential in the future as it’s market expands. By being a part of the journey with Disney, you have the change to secure profiles from not just Hulu but also other streaming franchises like Disney+ and ESPN+.