FOX Exec Calls Hulu Relationship ‘Symbiotic,’ Hopes New Deal Will Help Streamer Stand Out
Inter-company strife is not new in the streaming industry. For proof, one has to look no further than the current frosty relationship between Comcast and Disney. Disney is still interested in buying Comcast’s 33% ownership stake in Hulu, but the two sides have feuded publicly for months over a proper sale price.
Things were a lot easier for Hulu when equal shares of the company were owned by Disney, Comcast, and FOX. That balance changed when Disney purchased most of FOX’s assets in 2019, creating the current stalemate in which Disney is the majority owner of Hulu. Although the company no longer has an ownership stake in Hulu, FOX executives are more than happy to maintain a relationship with the streamer, as evidenced by a recent renewal of a multi-year deal between the two sides that will keep next-day streams of FOX primetime shows on the service.
FOX Corporation CEO Lachlan Murdoch spoke about the renewal in the company’s Feb. 8 earnings call with investors and analysts. He touted the streamer’s importance to the network, especially as a place to catch viewers who might otherwise miss out on new episodes of their favorite shows like “9-1-1” or “Bob's Burgers” as live TV viewing declines.
“The Hulu renewal was important — very important to us and also very important to Hulu,” Murdoch said. “The kind of symbiotic relationship that we have with Hulu, it grows in significance as viewers more and more watch our content on a sort of catch-up basis. So when we look at our hit shows, we’re not monetizing them in the first window in the live or even live plus same day window, as you all know, in the same manner that we used to.”
FOX clearly sees its Hulu deal as a vital part of its viewing options for consumers. Since fewer and fewer audience members are tuning in to watch primetime programming live, it is crucial for the network to get these viewers tuning in at some point to keep advertising revenues consistent.
Murdoch also pointed out Hulu’s unique position in an increasingly saturated streaming market. Next-day streaming rights to FOX shows provide “Hulu with a key point of differentiation in a crowded streaming world,” he said.
It’s hard to argue that Hulu occupies a singular position in the streaming industry. Hulu is the only service available that offers next-day streams of primetime content from two broadcast networks: ABC and FOX. This gives the service an impressive lineup of shows, and also means that users have to stick with Hulu if they don’t want to watch live and be beholden to primetime TV schedules.
Disney is at something of a crossroads with Hulu. Some analysts think the company should sell the streamer, while some investors think Disney needs to buy the rest of Hulu from Comcast now or get out of streaming altogether. The House of Mouse inarguably has a mess on its hands, but FOX executives are unbothered and happy to see their relationship with Hulu continue, likely no matter who is ultimately the owner.
Hulu
Hulu is a video streaming service that gives access to thousands of full seasons of exclusive series, hit movies, kids shows, and Hulu Originals like “Only Murders in the Building,” and “The Handmaid’s Tale.”