Hulu is already not as popular as rival Netflix and there will be more competition from Amazon and the Redbox Instant service, and now the future of the service itself has become uncertain due to problems from the inside.
According to available info, News Corp. and Disney, the two companies which each own roughly a third of Hulu, have started discussing the future of the service and their own stakes in the company. The two companies have plans to purchase the other’s stake or sell it to an outside company. Apparently, they have disagreements regarding the direction in which Hulu should go.
Currently, Hulu offers a free version and also a Hulu Plus subscription service and both the offerings include ads. The disagreement between the two companies is that Disney prefers an ad-supported strategy, while News Corp. feels that the focus should be on subscriptions. In the case of subscriptions, Hulu with just 3 million subscribers is nowhere near Netflix’s 27 million.
Hulu’s CEO Jason Kilar and CTO Tom Rich earlier announced their plans to step down from the company. So the future of the service might only be decided after its new CEO and CTO are announced, possibly along with new owners as well. Till then uncertainty surrounds Hulu.
Do you use Hulu regularly? Do you subscribe to Hulu Plus?