3 Reasons Hulu Will Survive the Streaming Wars
Hulu is currently one of the three most popular video streaming services in the United States, alongside Netflix (NASDAQ: NFLX) and Amazon Prime Video. But Hulu will see a lot of changes over the next few months as new competitors enter the market and its ability to hold onto valuable licensed content diminishes.
A big draw for Hulu is its next-day access to popular television series, but that could go away for a lot of shows. AT&T's (NYSE: T) WarnerMedia sold its stake back to the company and is launching HBO Max, so it no longer has as much interest in licensing content to Hulu. Meanwhile, Comcast's NBCUniversal will be able to stream the content it currently licenses to Hulu on its own streaming service, and it has the option to pull its content from Hulu entirely in early 2022.
The influx of new competitors vying for consumer's wallets and a change in the content catalog at Hulu could spur some subscribers to leave the service for a new competitor. But Disney (NYSE: DIS) investors shouldn't worry too much that Hulu's value will decline as its position in the market changes. There are three big reasons Hulu should be able to handle the incoming competition just fine.
Source Fool.com
