Does Disney Have a Hulu Problem?
Since Netflix (NASDAQ: NFLX) reported lower quarter-over-quarter subscriber numbers, other streaming stocks have been under a microscope. But it's not just subscriber numbers that are being called into question. It's also the long-term profitability of the streaming model.
Walt Disney's (NYSE: DIS) direct-to-consumer (DTC) segment -- which includes Disney+, ESPN+, and Hulu -- posted an operating loss of $1.48 billion in the first half of Disney's fiscal 2022, despite better-than-expected subscriber growth.
Although Disney+ is the face of the company's DTC segment, it was actually Hulu that contributed the bulk of operating expenses. Disney owns a 67% stake in Hulu, with Comcast owning the other third. Let's take a deep dive into Disney's DTC segment to see if Disney has a Hulu problem.
Source Fool.com
