Time Warner Buys 10% of Hulu, Will Be Part of Skinny Bundle
Making a bet on the future of streaming video, Time Warner bought a 10 percent stake in Hulu, both companies announced today. Time Warner paid $583 million in an all-cash transaction, which gives Hulu a valuation of $5.8 billion. That's three times its valuation from 2012, the Wall Street Journal reports.
Time Warner is already a streaming pioneer, as it owns HBO and launched stand-alone streaming service HBO Now last year. Today's move shows it taking a strong stance on streaming as a hedge against pay TV erosion.
During its newfront presentation in May, Hulu confirmed that it will launch a streaming skinny bundle service, expected to go for $40 per month and debut in 2017. Part of today's news is that Time Warner channels CNN, TNT, TBS, Cartoon Network, Adult Swim, Boomerang, truTV, and Turner Classic Movies will be part of that service, providing both live and on-demand content.
“Our investment in Hulu underscores Time Warner’s commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe," said Jeff Bewkes, chairman and CEO of Time Warner, in a statement.
Hulu is jointly owned by The Walt Disney Company, 21st Century Fox, and Comcast—and, now, Time Warner.
With established content brands plus AT&T's reach and a new cross-platform marketplace, WarnerMedia hopes to win ad dollars for platform launch in early 2020
The upcoming service will combine programming from HBO, Turner, and Warner Bros, launching around the same time as Disney's OTT service.
The house of Batman is creating an SVOD service that offers original live action and animated shows, as well as a curated library of comics.
At the CNN NewFront, Casey Neistat revealed that his video-focused news channel will debut on YouTube and Facebook this summer.
An old media company is learning new tricks as Time overhauls its editorial and advertising operations through the use of granular data on video viewing.
When consumers have access to an almost unlimited supply of premium content, surfacing programs they'll enjoy becomes a major challenge.
Hulu is no longer interested in free streaming, but Yahoo's video operations could use some focus. The two companies strike a deal for the future.
Subscribers will soon be able to view live and on-demand content in one place; 70 percent of Hulu viewing now done on a TV screen.
Even when viewers watch programs from an SVOD service, they like to know which networks created the content.
Netflix has chosen to pass on blockbuster titles already available on other services, and instead will shop for exclusives.