Hulu, in its own right, has established itself as a formidable presence in the streaming service game, pioneering a distinct space despite competition from major players like Netflix, Amazon Prime Video, and Disney+.
Hulu has developed drastically since its start, evolving in line with changing consumer behavior, advancements in technology, and changes in the media landscape. This post takes a look at Hulu’s evolution from the initial days to where it is now including the key events in this journey such as multiple ownership changes, content strategies, challenges, Subscription models, pricing tiers, subscriber growth across the years, & the future.
Inception and early days (2007–2010)
Hulu was started in March 2007 as a joint venture of NBCUniversal (Comcast), News Corporation (Fox), and later Disney-ABC. The need for adaptation to a more technological age is one of the reasons for the platform’s concept and a response to the rise of online video streaming services. Whereas Netflix started with DVD rentals, Hulu was intended to provide ad-supported streaming of television shows and movies shortly after they had aired.
When it was first launched, Hulu was unique for offering free and legal access to hit TV shows from its parent networks: Most of The Office (which was free on Hulu but is now being overcome on Peacock), 30 Rock (also free on Hulu, but checked out of Netflix), and Lost. This strategy proved successful in attracting millions of users, but also earned criticism from cable providers and content creators who worried it would eat into traditional TV revenue.
Acquisitions and Expansion (2011–2016)
In 2011, Hulu launched its first subscription tier, Hulu Plus, which gave subscribers access to a larger library of content for $7.99 a month, including full seasons of TV shows. This was part of the Hulu’s move toward a dual-revenue model, with ad-supported services and subscription-based offerings.
Much of this time, Hulu changed ownership structure significantly. In 2012, Providence Equity Partners sold its 10% stake to the founding partners (NBCUniversal, Fox and Disney). The next year, internal battles erupted within Hulu about its strategic positioning, with some stakeholders arguing for focusing on subscription revenue, while others advocated for ad-supported content.
Despite these setbacks, Hulu expanded, nabbing exclusive streaming rights to shows like Seinfeld and investing in original content. And Hulu the same year rolled out a first wave of original programming — The Path and 11.22.63 — a sign of its ambition to compete with Netflix and Amazon in the original content arena.
The Rise of Disney’s Power & Content Strategy (2017-2019)
The late 2010s were a watershed moment for Hulu as Disney started to assert its dominion over the service. Disney bought 21st Century Fox in 2017, a deal that included Fox’s 30 percent stake in Hulu. That move gave Disney a controlling 60% stake in Hulu, with Comcast’s NBCUniversal owning the other 30%.
Disney has made Hulu a more significant player in the streaming wars under Disney’s auspices, doubling down on original content with series like The Handmaid’s Tale, which won multiple Emmy Awards and firmly established Hulu as a serious competitor. In 2017, Hulu also expanded its content library with licensing deals and added live TV streaming with the launch of Hulu + Live TV, which positioned Hulu as a cable alternative.
The Streaming Wars and Hulu’s Competitive Advantage (2020-2022)
Disney+ launched in November 2019 and transformed the streaming universe, but rather than threaten Hulu’s growth, Disney folded its streaming service into a bigger ecosystem. One such service, offered by Disney for $13.99 per month, combined Disney+, Hulu, and ESPN+ into one package and promised consumers a broad selection of content at lower costs.
Hulu also experimented with subscription options, launching ad-free and ad-supported pricing models in line with customer needs. As of 2022, Hulu boasted more than 45 million subscribers—a testament to its ability to adapt and thrive in a crowded market.
Present Status and Future Prospects (2023 & Afterwards)
But Hulu does have tons of more recently available shows and movies (Especially its original programming) and a variety of licensed shows, as well as live TV, as of 2023. Its pricing tiers break down like this:
Hulu (Ad-Supported): $7.99/mo.
Hulu (Ad-Free): $14.99/month
Hulu + Live TV: $69.99/month
Hulu’s subscriber count is on the rise, thanks to its competitively priced offerings, exclusive content library, and its connection to Disney’s wider marketplace. But challenges remain, including ballooning content production costs, increased competition, and the need to hold on to subscribers in a time of subscription fatigue.
As for the future, Hulu’s path is inextricably linked to Disney’s strategic ambition. Disney is also in talks about acquiring Comcast’s remaining stake in Hulu to own that platform outright. Largely though, Hulu is expected to be more widely available in more countries than the U.S.
Conclusion
From its launch as a free, ad-supported streaming service to its role as a heavyweight in the streaming wars today, Hulu’s evolution mirrors a broader rewrite in the media business. Through a combination of flexibility to match shifting consumer needs, adoption of emerging technologies, and harnessing the best elements of its ownership groups, Hulu has established itself in the fierce streaming race. Hulu’s future in the industry will largely depend on its ability to innovate and create a distinct place for itself as the industry continues to change.
