Hulu Could Turn Profit in Two Years
Premium 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.