By Taylor Durham
- Disney ups Hulu stake from 66% to 100% after taking over full operational control from Comcast
- 74% of African Americans use their smartphones to watch video content
In a bid to command a larger share of the streaming market, Disney (DIS +0.02%) recently took full operational control of Hulu, Netflix’s (NFLX +1.83%) primary competitor. Disney and Netflix are currently head to head in the amount of content being produced through their platforms, attracting talent of color in-front of and behind the camera. With African American adults using video streaming services an average of 19 hours per week in 2018, making them the largest media consumers in the market, it will be important for Disney and Hulu to up the content geared towards this demographic.
Why This Matters: It’s been a buyer’s market for Disney, first with its groundbreaking $75 billion acquisition of Fox followed by increased control of Hulu. The corporate media giant expected Hulu to reach a minimum value of $27.5B by 2024 with 60 million subscribers to match. With Disney+ expected to arrive in homes this fall and plans for a total reboot of Hulu in the works, Disney is applying pressure on Netflix by enticing its viewers to sign up for its services.
African American adults used video streaming services an average of 19 hours per week in 2018
The last decade has seen African American content and programming sought after by multiple production companies in an effort to diversify content offerings and attract Black viewers. Netflix is aiming to solidify its service as a hub of Black content by inking deals with veteran talents Spike Lee and Shonda Rhimes to multi-year deals with the Obamas (yes those Obamas). Netflix and Disney are betting on these trends holding true as they expand their audience reach. Disney is no stranger to attracting Black viewers. ABC is home to cultural hits such as Black-ish, Scandal and How To Get Away with Murder, programs not fit for Disney+ but suitable for Hulu.
Situational Awareness: Disney will have to use everything in its arsenal to attract Black viewers to have already developed a loyal following with Netflix, whose programming has resonated with the Black viewers through critical acclaim and cultural representation.
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