Is Hulu Profitable 2024?

There’s no doubt that VOD content via OTT platforms has become the first choice of people looking for entertainment. Now, you must be thinking about Netflix, Amazon, or Disney, but there is another video streaming platform that is a well-thought-out idea of top entertainment magnets, and that is Hulu. Yes, and if you have heard about Hulu then it leads to the next question: Is Hulu Profitable 2024?

Hulu faces a lot of competition from other platforms, such as Amazon. However, despite facing the competition, it became a very popular streaming platform in a short span of time.

But do you know that it didn’t gain fame over time and is actually the result of continuous efforts, strategies, and struggles. So, wouldn’t it be interesting to know how this mighty oak grew from a little acorn?

Therefore, to know how Hulu became a popular platform and how it became more popular than Disney and Amazon, keep reading this guide.


What Is Hulu?

What Is Hulu

Hulu is one of the most popular premium video-on-demand services that was established in 2009 by NBC Universal Executive Beth Comstock and Jason Killar with founding partners such as AOL, Facebook, Comcast, MSN, Yahoo, and MySpace.

In 2009, it managed to raise over $100 Million in funds, and by 2011 Hulu started creating its own content. This led to a strong foundation for the platform, and in 2017, it became the most popular live TV streaming service in the United States.


How Does Hulu Work?

Over the years, Hulu has become the top application for almost 80% of VOD content viewers. It is also known as the savior of TV content. It has partnered with all the TV channels such as NBC, ABC, Fox, CNBC, and more. So, online its competitors like Netflix encourage people to cut their TV cable networks, while Hulu focuses on TV shows.

To use Hulu, users need to access the Hulu app. Users can choose the free plan that can only be accessed through PC only. Whereas the paid subscription of the platform comes with multiple device compatibility.

However, a one-month free subscription is also offered to users registering in the app.


How Does Hulu Generate Revenue?

The primary source of revenue for Hulu is its video streaming services. According to the reports, 54% of Hulu’s total revenue comes from subscriptions. The average subscription earns $13.51/month per paying SVOD-only subscriber.

It makes a profit through three primary sources:

1. Subscriptions

As we already discussed, 54% of Hulu’s revenue comes from subscriptions. It offers 4 basic subscription plans to its users. The users can choose programs to watch from Hulu’s library based on the subscriptions they opted for.

2. Add-Ons

Every plan of Hulu comes with add-ons enabling the users to access them. This means that users can pay extra fees to access live TV, HBO, CINEMAX, and many other platforms. These add-ons are small but contribute a significant amount to Hulu’s revenue.

3. Advertisements

According to the data for 2019, Hulu has 82 million subscribers, out of which 36 million were ad-free subscribers. Hence, many advertisers were able to access millions of viewers on Hulu. In 2019, Hulu earned $1.9 billion from advertisements alone.


Is Hulu Profitable 2024?

Hulu is a top pick of many people when looking for the best streaming service to sign up for. It has a huge library of programs that include popular shows like ‘Only Murders In The Building” and ‘The Bear’.

However, how profitable this platform is can only be evaluated by the revenue it is earning over the years. So, below is the table containing the revenue of Hulu:

Annual Revenue Of Hulu From 2011-2023

YearsRevenue ($bn)
20110.4
20120.6
20131.1
20141.6
20152
20162.4
20173.1
20183.5
20194.5
20207.2
20219.6
202210.7
202311.2

Streaming Revenue Of Hulu

YearsRevenue ($bn)
20193.7
20204.4
20215.8
20226.3
20236.3

Hulu’s Live TV Revenue

YearsRevenue ($bn)
20191.4
20202.8
20213.7
20224.4
20234.8


How Much Does Hulu Cost A Month?

The prices of Hulu start from $8 to $90 a month to top tier plans with live TV. To understand the plans of Hulu, here is a table showing its pricing plans:

Basic HuluHulu (no ads)Hulu (Ads) + Live TvHulu (No Ads) + Live TV
Monthly Price$7.99$17.99$79.99$89.99
Ad-free on demand streaming NoYesNoYes
Ad-free on-demand streaming YesYesYesYes
Access to 90+ channels of Live TVNoNoYesYes
Disney Plus and ESPN Plus includedNoNoYesYes
Number of Simultaneous screens2222
Access to premium add-onsYesYesYesYes
Download support for offline viewersNoYesNoYes

Hulu Ad-Ons

Ad-OnsPrice per monthAvailable with Hulu + Live TV Only
Disney Plus (With Ads)$2No
ESPN Plus$10.99No
Max$15.99No
Showtime$10.99No
Cinemax$9.99No
Starz$9.99No
Unlimited Screens$9.99Yes
Entertainment Add-On$7.99Yes
Sports Add-On$9.99Yes
Espanol Add-On$4.99Yes

Hulu Bundle Plan

Bundle PlanPricing
Disney Plus (Ads) & Hulu (Ads)$10/month
Disney Plus (Ads), Hulu (Ads) & ESPN$15/month
Disney Plus (Ad-free) & Hulu (Ad-free)$20/month
Disney Plus (Ad-free), Hulu (Ad-free) & ESPN$25/month


Who Owns Hulu?

Initially, Hulu was owned by Comcast, but recently, in 2023, The Walt Disney Company acquired two-thirds of Hulu and is planning to buy the remaining third from Comcast’s NBC Universal.

Disney is expected to invest approximately $8.61 billion for the 33% stake in Hulu. But the figure is based on the valuation done in 2019, and now Hulu is valued at $27.5 billion.

In July 2023, it was reported that Hulu’s subscribers had reached 48.3 million, whereas Disney+ has 146.1 million subscribers. But these numbers were after it lost 11.7 million subscribers in Q2 2023.

However, as it stands, Disney is committed to the minimum price set in 2019.


What Is The Future Of Disney-Owned Hulu?

What Is The Future Of Disney-Owned Hulu

Considering the fact that Disney now owns most of Hulu, there is only one concern, which is content availability.

Comcast promised Hulu to provide NBCUniversal content until the end of 2024, but whether this deal will continue or not is not given in the post-sale.

However, Disney already has plans to launch a platform combining both Disney+ and Hulu. Therefore, we can expect to see a more fluid correlation between the two services.

Moreover, Disney can see more ad revenue as 70% of Hulu’s subscribers use ads. On the other hand, Comcast is already looking to enhance shareholder returns and buy back stocks. OIt also has its Peacock streaming service that it can use to attract the same customer base it had with Hulu.


How Many Subscribers Does Hulu Have?

Annual Subscribers Of Hulu

YearSubscribers (mm)
20111
20122
20134
20146
201510
201612
201717
201822
201925
202032
202141
202245
202348.2

Hulu Annual Streaming Subscribers

YearsSubscribers (mm)
201820.1
201923.2
202028.8
202137.8
202241.4
202343.7

Hulu Live TV Subscribers

YearsSubscribers (mm)
20181.1
20192
20203.3
20213.8
20224.1
20234.4


Hulu Vs Competitor’s Users

Hulu Vs Competitor's Users


Conclusion

According to IndieWire, Netflix and Hulu are the only two major streaming platforms that made a profit by the end of 2022. This data perfectly answers ” Is Hulu Profitable 2024?”

As we know, most of the revenue of Hulu comes from ads, and the number of subscribers with ads is rapidly growing, which ultimately increases the potential of the company to earn more profit.

By this, you can estimate how profitable this video streaming platform is.


FAQs

What is the average monthly revenue of a Hulu subscriber?

On average, a Hulu subscriber generated $12.24 in 2020, while a Live TV subscriber generated $67.24.

Why is Disney acquiring Hulu?

No specifics were given on the topic. But Robert Iger, CEO of Disney, believes that combining Disney and Hulu will result in increased engagement, greater advertising opportunities, lower churn, and reduced customer acquisition costs.

Which is the most successful streaming service?

Netflix is the largest streaming service in the world. In 2023, it was reported to have 247.15 million global paid memberships.

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