On Wednesday, the Walt Disney Company announced that it will purchase Comcast’s $8.6 billion stake in Hulu, completing its acquisition of the streaming service.
The acquisition will “further Disney’s streaming objectives,” according to a news release, and comes as the firm works to increase subscriber numbers for its Disney+ streaming service.
According to Disney, the agreement values Hulu at $27.5 billion in total and is expected to close by December 1.
Hulu is already available as part of packaged packages with Disney+ and ESPN+ on the California-based entertainment conglomerate’s platforms.
Next week, the business will disclose its most recent quarterly financial report, which will provide an update on how its cable and streaming television services are performing in the extremely competitive sector.
Disney revealed in August that Disney+ lost more than 10 million subscribers in the most recent quarter, owing largely to the Indian market.
According to the company, Disney+ had 146.1 million subscribers at the end of the second quarter of this year, up from just shy of 158 million in the previous quarter.
Netflix, Disney’s rival, reported last month that member numbers increased nearly 11% to 247 million in the most recent quarter as it tightened down on password sharing and polished an ad-supported tier.
The biggest streaming provider raised the prices of some of its plans, potentially opening the door for competitors such as Disney.
In an earnings report, Netflix stated that its nascent ad-supported service was gaining popularity, and the next Disney earnings should reveal whether the same is true for its ad-supported tier.
Meanwhile, film and television producers in the United States are experiencing production halts due to an actor strike, potentially resulting in a dearth of fresh content needed to attract and retain streaming service consumers.