What to do with Hulu?
That’s one of the most strategic questions facing Disney and Comcast as they battle to win control of 21st Century Fox, a takeover contest likely to ramp up this week. Whichever wins will get control of the service, which has signed up more than 20 million subscribers and is now a serious competitor to Netflix, Amazon and streaming cable services like DirecTV Now.
But that success has come at an enormous cost. Hulu’s losses have ballooned in recent years—up 140% to $436 million in the first quarter alone. Hulu’s owners—Fox, Comcast, Disney and Time Warner—have committed to invest $1.5 billion in the service this year, securities filings indicate.