Hulu had a remarkable rise in popularity. The total number of paid subscribers to the streaming video service can only flow in one direction: up. All of the possibilities point to a solid buy. But how do you purchase Hulu stock? Is there a chance for a Hulu IPO soon? Is it a second Netflix? Let’s explore the possibilities, learn more about the streaming market, and learn how to get Hulu stock.
What Exactly is Hulu?
Hulu is a rapidly expanding Disney-owned streaming and live-streaming service. It offers thousands of episodes and movies. Monthly rates start at $5.99, and there is also a free version.
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How Big is Hulu’s Subscriber Base?
Hulu had 0.3 million users in the fourth quarter of 2010. However, they had ten times the number of subscribers in Quarter 4 2012 – 3 million. After that, just seven years later, Hulu had a subscriber base of 30.4 million.
What is the Value of Hulu?
The best key statistic to use in evaluating it is the number of subscribers. Hulu seems to have 30.4 million users, compared to Netflix’s 167M. So, if we imagine that Hulu makes roughly the same amount of money per user as Netflix, the rough calculation using Netflix’s stock price is $61.89.
Who is More Valuable, Netflix or Hulu?
Netflix is currently the best. However, Disney now owns a majority stake in Hulu. In Jan 2020, they decided to integrate Hulu’s facilities. And this demonstrates where the strength lies.
Is Hulu a Publicly Listed Company?
Hulu is not a publicly traded corporation. On the other hand, Hulu’s revenues go directly into Disney’s account balances because Disney owns Hulu. Therefore, you can purchase Disney stock if you want to invest in Hulu shares.
Who is the Owner of Hulu Stock?
Disney primarily owns Hulu. As a result, Disney’s share price can be used to invest in Hulu’s company’s growth. In addition, Hulu’s price will benefit as the streaming platform expands. Presently, Comcast is the only co-owner left.
Is Hulu Planning an Initial Public Offering (IPO)?
IPOs were organized in the previous era when various stakeholders controlled the organization. Disney owns the majority ownership of Hulu, and it currently has no plans for an IPO. However, things may change if Disney tries to raise profits in the coming years.
So What is Hulu’s Ticker Symbol?
Hulu doesn’t even have a stock symbol; however, since Disney owns a portion of the company, investors could buy Disney shares of inventory instead. NYSE: DIS is the company’s ticker symbol.
Hulu’s Long-Term Future
Hulu was fully integrated into Disney’s operating management service and model landscape. They want Hulu to be the primary driver of the company’s stock price.
Disney now has Disney+ & Hulu as their primary streaming platforms. However, Hulu offers more than Disney+, which is just another video streaming platform.
Hulu is a video-on-demand service that includes advertisements, costing $5.99 monthly.
Hulu streaming video (ad-free) and costs $11.99 per month.
Streaming + live television costs $54.99 per month plus advertisement
Live TV service plus ad-free broadcasting live and costs $60.99 per month
The customized ad placements are what sets them apart from their rivals. Subscribers could even have a reduced monthly payment charge if they prefer. And it’s there that they might make a lot of money, whereas Netflix can’t.
Think about how Netflix decided to launch an ad-supported subscription service. Given that Netflix is publicly traded and has over 160 million users, this would be a warning sign. Moreover, the ramifications would be difficult to predict.
It’s not the same for Hulu, which has a primary subscription model. If you look closely at Hulu’s official site, you’ll notice that the least expensive plans are prominently displayed on the webpage. The accessible add-on, known as “no ads,” is only visible in the simple drop-down list.
What does this mean for Hulu’s future, though? That’s simple: combining ads into streaming video will almost certainly result in Hulu making even more profit per subscriber than selling ad-free subscriptions.
Netflix
Netflix is Hulu’s main rival. It currently has around 170 million users and is feasible in over 190 countries worldwide. Netflix is the most popular video streaming service. It was in the right spot at the right time, and its business grew at a rapid pace, even though the movie rental store still believed streaming would never be a viable option.
Netflix is similar to Amazon in terms of streaming and e-commerce. Netflix currently has three monthly subscriptions and has only raised subscription fees once.
The Streaming Levels are as follows:
Basic: $8.99 monthly for one gadget with a maximum 480p resolution.
Standard: $12.99 per month for two gadgets with a maximum 1080p resolution (HD)
Premium: $ 15.99 monthly for up to 4 gadgets in Ultra HD quality simultaneously.
Amazon Prime Video
Amazon, like AT&T and Apple, spends billions developing its broadcast network. As a result, Amazon is the most profitable e-commerce platform. However, the streaming industry has enormous potential, and it’s no surprise that Amazon launched its streaming service, Amazon Prime Video.
When a dedicated video content subscription is selected, users can watch blockbuster films and the best Amazon original programming for $8.99 per 30 days in the United States.
The main advantage is for Amazon Prime customers who already have an account. This is because Amazon Prime Video is included in their $199 annual premium plan, which also includes expedited shipping services and Amazon Prime Video.
Disney+
Disney+ isn’t a Hulu rival, so you can stream Disney movies, seasons, and shows on Disney+. As a result, Disney+ & Hulu do not have any content in common. Disney+, like Hulu, is, however, owned by Disney. That means Hulu and Disney+, their in-house broadcast services, will go after Amazon Prime Video and Netflix.
Besides Hulu’s revenue, Disney+ contributes to the company’s profitability and balance sheet.
The Disney+ rate structure is simple. You can pay $70 for an annual streaming subscription or $7 monthly for a month-to-month subscription. There are no additional tiers available.
When you add the $5.99 per month Hulu plan to the $5.83/month yearly Disney+ subscription, you get $11.82 / 30 days; this is less than the Netflix HD subscription fee.
How do I Purchase Hulu stock?
By purchasing Disney stock, shareholders can participate in Hulu’s growth. However, the Hulu symbol is in short supply. One NYSE: DIS is the stock symbol for Disney.
Here’s a Quick Guide to Buying Hulu Stock:
To begin, select an online booking website, such as Webull, Tradestation, or TD Ameritrade. Within the U. S., they all offer no-commission trading. Here’s a quick guide to buying Hulu stock:
Look for the ticker symbol DIS, which is mentioned on the New York Stock Exchange.
Remember that if you choose to be a part of a growth story, it is always for the long haul. The projected growth of Disney shares is unrelated to day trading because fundamentals are irrelevant when it comes to intraday trading.
See if Disney gives Hulu stock to its everyday stockholders long-term or if an entirely different Hulu share value is established. Unfortunately, for now, Hulu’s share value must be determined by Disney’s share price. Therefore, those interested in owning a piece of Hulu must probably wait for the future IPO.
Conclusion
On-demand video streaming platforms are the way to watch films in the current term, and Hulu is very well positioned to challenge Netflix. In addition, Hulu is worth buying because of Disney’s reputation, limitless ad space, excellent marketing revenue potential, and lower-priced membership service.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Nimblefreelancer.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@nimblefreelancer.com