View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
August 4, 2016

Time Warner buys 10% stake in Hulu for $583m

News: The company will stream live TV content when Hulu starts its services next year.

By CBR Staff Writer

Time Warner has bought a 10% stake in Hulu for $583m. This values the web streaming company at around $5.8bn.

With this stake acquisition, several of Time Warner’s channels including TBS, CNN, Turner Classic Movies, TruTV, Adult Swim, Cartoon Network and Boomerang could receive live streaming options on Hulu services.

Time Warner said that that the investment is part of its effort to offer innovative digital services, giving its customers alternative platform to access high quality content.

Time Warner chairman and CEO Jeff Bewkes said: “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.”

The stakeholders of Hulu include major media houses such as Disney, Fox and ComCast. Adding Turner networks could bring in an ‘intuitive and personalised interface’ where content could be watched in both live stream and on-demand across a range of devices. At present, Hulu is available on iOS, Apple TV and on Android Play Store.

According to News site Recode, Hulu has been losing hundreds of millions of dollars every year, as per an estimate, and originally wanted to sell at least a 25% stake to Time Warner.

Currently, Time Warner will not contribute any of its content to Hulu, but it will stream live TV services on Hulu platform next year when it starts its live streaming services.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

When Hulu starts its live streaming services, it will compete with traditional TV service providers Charter and Comcast.

Bewkes said: “We’re also excited to join Hulu’s other owners in launching a new consumer-friendly package featuring leading networks that will deliver more value to audiences and complement Hulu’s core SVOD offerings.

“The inclusion of Turner’s networks in Hulu’s new streaming service furthers our efforts to allow consumers to engage with and enjoy our brands across a wide range of platforms and services.”

Pricing for the next year’s live streaming from Hulu still needs to be known. But, it charges $7.99 per month with limited ads and $11.99 per month for ads-free services.

Hulu CEO Mike Hopkins said: “This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers.

“Our two companies have long enjoyed a productive relationship – which includes the availability of past seasons of popular Turner shows on our current SVOD offerings – and we are very proud that Turner’s networks will be included in our planned live streaming service.”

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU