Why Disney Is Expecting To Lose A Lot Of Money On Hulu Next Year

The Handmaid's Tale Hulu

Hulu might be winning big with original series' like The Handmaid's Tale, but other facets of the subscription service still require a little T.L.C. until they get some legs. The "C", in this instance at least, is cash. Disney reports they're expecting around $100 million in losses in the next fiscal year due to the launch of Hulu Live. Apparently, putting live television on a streaming service is not cheap!

While costly, Home Media Magazine reports Disney CEO Bob Iger expressed faith in the service, which allows subscribers to watch a select number of television channels to watch live from their app. Iger, who also reported Disney will incur 70% of their $100 million loss in the first quarter of the fiscal year, says that early numbers on the service are encouraging, and it would appear there are no plans to suspend the service at this time. Iger said that, overall, the bottom line of Hulu has increased from 2016 to 2017, which is good news.

That's not just good news for Disney, but for its co-owners 21st Century Fox, Comcast, and Time-Warner as well. While investment costs for Hulu Live and original programming (which Hulu will reportedly spend $2.5 billion on this coming year) are high, it appears the company is positioning itself to be the must have service for when the scale tips for television consumers who are looking to cut the cord. Disney, who is separately launching a couple streaming services of its own in the near future, seems especially committed in the fact that the future is in the internet over cable.

Hulu Live, which currently boasts the ability to watch over 50+ channels live starting at $39.99 a month, is certainly an attractive and cheaper option for those who are tired of their cable subscription. Beyond the base price, users can also customize their experience and, for additional fees, add premium channels like Showtime or HBO, make the service available on unlimited screens, or record up to 50 hours of television via the service's Enhanced Cloud DVR. Of course, given Hulu is owned by many of the same cable companies those who cut the cord are wishing to escape, there may be some skepticism in regards to the service. That said, it's seemingly cheaper than a fair amount of cable packages, so there's definitely an incentive to adopt for many rather than continuing to pay a hefty cable bill.

As mentioned, Hulu Live is currently a service available through Hulu. For more on fall programming that may currently be available on the service, be sure to check out our fall premiere guide. For a look ahead at 2018, CinemaBlend's midseason premiere guide has the web's best look at television to watch at the start of the new year. For a look of shows that got cancelled in 2017, visit our cancellation guide.

Mick Joest
Content Producer

Mick Joest is a Content Producer for CinemaBlend with his hand in an eclectic mix of television goodness. Star Trek is his main jam, but he also regularly reports on happenings in the world of Star Trek, WWE, Doctor Who, 90 Day Fiancé, Quantum Leap, and Big Brother. He graduated from the University of Southern Indiana with a degree in Journalism and a minor in Radio and Television. He's great at hosting panels and appearing on podcasts if given the chance as well.