Yahoo Finance Hulu Boosts Live TV & Guide Experience With New Features
Hulu, which is jointly owned by Disney DIS, 21st Century Fox FOXA, Time Warner Inc. TWX and Comcast CMCSA owned NBCUniversal is set to update its web and mobile applications. The company is introducing a series of features that better support its new Live TV destination and guide experience.
The Live TV destination feature will direct users to the most recently watched channel with fewer clicks. The guide provides easy access to the current and upcoming content in the next 24 hours along with the ability to switch channels.
With Hulu’s vertical video player option, a user can simultaneously play both Live TV and on-demand content. The on-demand library also sends users recommendations on content, while being used.
The scrubbing function has also been enhanced as it now shows a preview of the frame that helps users return to the exact spot that they last viewed.
Moreover, Hulu will now support HDMI for iOS. The platform is also increasing its compatibility with Chromecast devices, which will let users watch the mobile app on a large screen.
Also, part of the update include recommendation features, “Stop Suggesting” to alert Hulu if an user is not interested in a recommendation and “Remove” to erase a selection from their viewing history.
However, the unavailability of some channels like HBO, AMC Networks, Viacom, Starz and Discovery Communications can cause inconvenience to some users.
New Features to Boost Subscriber Base
Hulu now has more than 20 million subscribers for its various tiers, which include both its Live TV service and its cheaper on-demand tiers. We believe that the new features will help the company to retain existing as well as attract new subscribers going forward.
Moreover, the company’s partnership with Spotify (SPOT), in April, could further increase these numbers. Spotify’s premium subscribers can now access Hulu’s ad-supported services for a $13-per-month plan.
Hulu has a high licensed-to-original viewing content ratio. Almost 89% of Hulu’s subscribers watched licensed content first. Although original content is a key factor for driving new subscriptions, licensed content remains the viewing choice of a bulk of U.S. viewers.
Disney-Fox Deal to Change Hulu’s Fortune
Disney, 21st Century Fox and Comcast each own a 30% stake in Hulu, with Time Warner owing other 10%. The multi-parent structure allows Hulu to have an enviable content pipeline.
Moreover, with the Disney-Fox deal, Disney is expected to gain a 60% stake in Hulu. Post acquisition, the company is likely to direct more of its streaming content toward the platform, which will further boost Hulu’s subscriber base.
However, Comcast is reportedly aiming for 21st Century Fox’s assets and is expected to offer $60 billion in cash, higher than Disney’s $52 billion purchase price. The cable giant is expected to submit the bid only if the proposed AT&T and Time Warner deal passes through regulatory appeal.
The Walt Disney Company Price and Consensus
The Walt Disney Company Price and Consensus | The Walt Disney Company Quote
Currently, both Disney and Comcast carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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