Hulu Could Turn Profit in Two Years

By on May, 24 2016 with Comments 0

HuluPremium digital video service Hulu could be profitable within two years, predicts one media analyst.

Disney-ABC Television, 21st Century Fox and Comcast Corp. jointly own Hulu.

Hulu is now worth $25 billion, according to Credit Suisse. That’s up dramatically from the $5 billion was worth a year ago when Time Warner was considering purchasing the company, reports MediaPost.

Credit Suisse Media Analyst Omar Sheikh believes Hulu could generate profits of more than $2 billion a year by 2020, though adding the company has had $1.4 billion of cumulative losses since 2008.

Hulu now has 12 million paying subscribers, up from 9 million a year ago. That compares to Netflix, which has 45 million U.S. subscribers.

About The Author: Leslie Stimson has been a reporter for 35+ years, starting in radio news. She’s spent the last 20 years reporting for radio trades.

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