As streaming television services are becoming extremely popular, the operating cost of companies like Amazon Prime, Netflix, Hulu are also growing. However, recently published earnings report has revealed that despite growing number of users, Hulu has lost $920 million in last year compared to $531million from 2016.
However, the company is unlikely to turn into profit as early numbers have predicted that losses are expected to be even higher for this year. Interestingly, the company isn’t losing money due to the number of subscribers. Last year, Hulu spent about $2.5 billion for original content. However, unlike Amazon Prime and Netflix, Hulu us available for US base customers only which might have resulted in smaller audience base.
While the figures are surprising, it seems that investors are not surprised by the performance. Earlier last year, Bob Iger revealed that Disney expected a loss of $100 million due to the launch of Hulu live. In case you are wondering, Hulu Live is a live TV option that runs for $39.99 per month and have a wide variety of channels.
As Hulu live has potential to become profitable in the coming years as it grows popularity, the company is likely to turn profit sometime in future. Moreover, the streaming service is gaining momentum among consumers thanks to its originals as several shows on the network have become critical smash. Despite that, it will be interesting to see if the streaming service becomes popular in the next couple of years.