Hulu makes money from subscription fees and advertising: viewers pay for an on-demand plan with or without ads, and some add the Hulu Live TV service with cable and broadcast channels. It is wholly owned by The Walt Disney Company, which completed the purchase of NBCUniversal’s stake and reports Hulu inside its Entertainment Direct-to-Consumer business with Disney+. Hulu had about 64 million paid subscribers as of 27 September 2025.
Hulu sells on-demand (SVOD) plans with or without advertising. In fiscal 2025 the SVOD Only plan averaged $12.36 a month per paid subscriber.
02
Live TV at a premium
Hulu Live TV + SVOD includes live streams of cable and broadcast networks, plus Disney+ and ESPN Select, and averaged $99.85 a month per subscriber in fiscal 2025, up from $95.12.
03
Advertising
Ad-supported plans earn from marketers. Across Disney's Entertainment DTC business, subscription fees were $20.8 billion and advertising $3.7 billion in fiscal 2025.
04
Content is the big cost
Hulu's programming and production costs were $9.0 billion in fiscal 2025, higher because of rising Live TV programming fees and more subscribers to bundles with third-party services.
What changed in 2025-26
Disney owns all of it
Disney completed the acquisition of NBCUniversal’s interest in Hulu, paying $8.6 billion in fiscal 2024 and an incremental $0.4 billion in June 2025 after a final appraisal of Hulu’s fair value.
Paid Hulu subscribers rose 23% to 64.1 million in the year to 27 September 2025; 43.7 million of them took a bundle with both Disney+ and Hulu, up from 27.1 million.
Live TV moved into Fubo
On 29 October 2025 Disney combined Hulu Live TV assets with Fubo and holds 70% of the combined company. Disney is the exclusive distributor of Hulu Live TV for five years, runs its marketing and pays Fubo a wholesale fee.
Hulu goes global, AI adds pressure
Outside the US, the Star tile inside Disney+ was rebranded as Hulu in October 2025. Disney’s 10-K warns that generative AI tools can create competing low-cost content and that legal protection for AI-generated IP is uncertain.
Hulu in Disney's fiscal 2025 filing
Paid Hulu subscribers
Figure64.1 million (SVOD Only 59.7m, Live TV 4.4m)
PeriodAs of 27 September 2025
SVOD Only monthly revenue per subscriber
Figure$12.36
PeriodFiscal 2025
Live TV + SVOD monthly revenue per subscriber
Figure$99.85
PeriodFiscal 2025
Hulu programming and production costs
Figure$9.0 billion
PeriodFiscal 2025
Entertainment DTC operating income (Disney+ and Hulu)
Figure$1.3 billion, from $143 million
PeriodFiscal 2025
What it means for you
Read Hulu as part of a bundle: most of its subscriber growth in fiscal 2025 came with Disney+.
Compare revenue per subscriber by plan; Live TV earns about eight times the SVOD plan but carries heavy programming fees.
For advertisers, ad-supported streaming is a scale play: Disney's DTC advertising was flat in fiscal 2025 as higher impressions offset lower rates.
For media operators, bundling spreads content costs; separating a costly unit, as with Live TV and Fubo, can protect margins.
Watch generative AI on both sides: cheaper production for studios, and cheaper competing content for viewers' time.
The Business Engineer lens
Hulu shows how a streaming service becomes a feature of a bundle: its value to Disney is lower churn and shared content costs, not a standalone brand. As AI lowers the cost of making video, owned IP and the distribution bundle become the defensible parts of the model.
The complete explainer, cleaned up and reformatted for mobile.
Hulu is an American subscription-based streaming service that offers a variety of TV shows, movies, and original content. It was founded in 2007 by Jason Kilar, Beth Comstock, and various others.
Hulu operates under a subscription-based model where users pay to receive access to an on-demand streaming service. The service offers both ad-supported and ad-free base plans to its users with the option of adding extras for a fee.
Hulu’s business model is also supported by an exceptional user experience that enables it to upsell consumers to a more expensive plan. The company’s ability to negotiate strategic partnerships is also a key component.
Hulu is an American subscription-based streaming service that offers a variety of TV shows, movies, and original content. It was founded in 2007 by Jason Kilar, Beth Comstock, and various others and is now wholly owned by The Walt Disney Company.
Value Proposition
DescriptionHulu offers a range of value propositions for its customers: – Content Variety: The platform provides a diverse library of on-demand streaming content, including movies, TV shows, original series, and documentaries. – Personalization: Hulu offers personalized recommendations based on user preferences and viewing history, enhancing the content discovery experience. – Ad-Supported and Ad-Free Options: Users can choose between ad-supported and ad-free subscription plans, providing flexibility in viewing experience. – Exclusive Originals: Hulu produces exclusive original content, including acclaimed series and films. – Live TV: Hulu + Live TV offers live streaming of TV channels, sports events, and news, combining on-demand and live content in one platform. – Device Compatibility: Hulu is accessible on various devices, including smartphones, smart TVs, gaming consoles, and streaming media players.
Core Products/Services
DescriptionHulu’s core products and services include: – On-Demand Streaming: The platform offers a vast library of on-demand streaming content, including current TV episodes and a wide range of past seasons and episodes. – Hulu Originals: Hulu produces and streams exclusive original content, including series, films, and documentaries. – Hulu + Live TV: This subscription tier combines on-demand streaming with live TV channels, sports coverage, and news broadcasts. – Personalized Recommendations: Hulu provides personalized content recommendations to users based on their viewing behavior and preferences. – Ad-Supported and Ad-Free Plans: Users can choose between plans with ads or opt for an ad-free viewing experience. – Multiple Device Access: Hulu is accessible on smartphones, tablets, smart TVs, gaming consoles, streaming devices, and web browsers.
Customer Segments
DescriptionHulu’s customer segments include: – Entertainment Enthusiasts: Individuals who enjoy streaming a wide variety of movies, TV shows, and original content. – Cord-Cutters: Consumers who have opted to cancel traditional cable or satellite TV subscriptions in favor of streaming services. – Sports Fans: Users interested in live sports coverage through Hulu + Live TV. – Families: Households seeking family-friendly content and the flexibility to stream on multiple devices. – TV Series Fans: Those who follow specific TV series and enjoy binge-watching past seasons. – Advertising Partners: Advertisers and brands looking to reach Hulu’s user base through targeted ads.
Revenue Streams
DescriptionHulu generates revenue through several revenue streams: – Subscription Fees: The company earns revenue from monthly subscription fees charged to users for its ad-supported and ad-free plans. – Hulu + Live TV: The live TV subscription tier generates additional revenue through monthly fees for access to live TV channels and sports content. – Advertising: Hulu monetizes its ad-supported plans by displaying advertisements to users, with revenue coming from advertisers. – Hulu Originals: Exclusive content and original productions can attract and retain subscribers, contributing to revenue. – Add-Ons and Premium Channels: Hulu offers add-ons and premium channel subscriptions (e.g., HBO, Showtime) for an extra fee, generating additional income. – Partnerships: The platform may form partnerships and collaborations with content providers, generating revenue-sharing arrangements.
Distribution Strategy
DescriptionHulu’s distributionstrategy focuses on accessibility, partnerships, and content acquisition: – Device Compatibility: Hulu ensures compatibility with a wide range of devices, making it accessible to users on smartphones, smart TVs, gaming consoles, and streaming media players. – Partnerships: The platform partners with content providers, studios, and networks to secure licensing agreements for a diverse content library. – Advertising Partnerships: Hulu collaborates with advertisers and brands to deliver targeted advertising campaigns to its user base. – Content Acquisition: Hulu acquires licenses and rights for both on-demand and live content, securing access to popular TV shows, movies, and sports events. – Original Content Production: The company invests in producing exclusive original content to attract and retain subscribers. – Global Expansion: Hulu may consider expanding its services to international markets, increasing its reach and user base.
Understanding Hulu’s business model
Hulu operates under a subscription-based model where users pay to receive access to an on-demand streaming service.
The service offers both ad-supported and ad-free base plans to its users with the option of adding extras for a fee.
These extras include Live TV, Disney, ESPN, HBO Max, Cinemax, SHOWTIME, and STARZ.
Hulu’s approach is based on targeted advertising which means that ads are tailored to the viewer’s interests and behavior. The company also offers Hulu Ad Manager; a self-service ad solution where businesses of all sizes can launch, manage, and track campaigns.
While the company cannot compete with Netflix on self-produced content, it has partnered with most of the cable networks in the USA and appeals to consumers who are not quite ready to abandon television.
The company offers personalized recommendations based on viewing history, and features such as Live TV and offline downloading broaden the platform’s appeal when compared to competitors like Netflix.
Hulu did not excel in this area until recently, but the company now understands that great content must be paired with great UX and UI to remain competitive. The platform now incorporates modern web design trends with bold typography, depth utilization, and immersive layouts.
In this way, the company utilizes its exceptional user experience as a tool to encourage customers to subscribe to a more expensive plan.
Strategic partnerships
Hulu has formed strategic partnerships with other companies to expand its reach and offer additional benefits to subscribers. For example, it partnered with Spotify in 2019 to offer a discounted bundle of their services to new and existing Spotify premium members.
The company also partnered with telco provider Sprint, whose Sprint Unlimited Plan subscribers could access Hulu for free.
Hulu’s ability to form strategic partnerships is also evident in the way it licenses content. Since the company is a relative newcome to self-produced content, it has through necessity developed the ability to enter into collaborations with various content providers.
These include television networks such as NBC and ABC, cable networks such as FX and Bravo, and movie studios like Lionsgate.
In January 2023, Hulu announced a multi-year content partnership with Fox Entertainment. In addition to securing the rights to Fox’s extensive library of hit shows, the Hulu brand would be promoted on all Fox-owned marketing touchpoints.
Value Proposition
Hulu offers a compelling value proposition to its customers by providing an extensive library of on-demand streaming content, including TV shows, movies, original series, and exclusive programming. Here are the key elements of Hulu’s value proposition:
Content Variety: Hulu offers a diverse selection of content from major networks, cable channels, and studios, catering to a wide range of interests and preferences. From popular TV series to blockbuster movies, Hulu provides something for everyone in its extensive library.
On-Demand Access: With Hulu, customers have the flexibility to watch their favorite shows and movies on-demand, at their convenience. They can stream content anytime, anywhere, on various devices, including smart TVs, smartphones, tablets, and gaming consoles.
Original Programming: Hulu produces original series and exclusive content, known as Hulu Originals, which are not available on other streaming platforms. These original productions, including award-winning shows like “The Handmaid’s Tale” and “The Great,” add value and exclusivity to Hulu’s offerings.
Live TV Option: In addition to on-demand content, Hulu offers a live TV streaming service that allows customers to watch live broadcasts of sports, news, and events from major networks and cable channels. This live TV option provides a comprehensive entertainment experience for cord-cutters.
Subscription Fees: Hulu offers subscription plans with different pricing tiers, including ad-supported and ad-free options, as well as a bundle with Disney+ and ESPN+. Subscribers pay a monthly fee to access Hulu’s content library and streaming services, contributing to the company’s recurring revenue stream.
Advertising Revenue: Hulu generates revenue from advertising placements within its streaming content. Advertisers pay to reach Hulu’s audience through pre-roll ads, mid-roll ads, and display ads displayed during streaming sessions. Ad-supported subscription tiers feature targeted advertising tailored to viewers’ interests and demographics.
Partnerships and Licensing: Hulu enters into partnerships and licensing agreements with content providers, networks, and studios to acquire streaming rights for TV shows, movies, and original programming. These partnerships involve licensing fees and revenue-sharing arrangements, allowing Hulu to expand its content library and attract subscribers.
Content Promotion: Hulu promotes its extensive library of content through targeted advertising campaigns across various channels, including television, digital media, social media, and email marketing. These promotions highlight popular shows, exclusive series, and original productions to attract viewers’ attention and encourage subscriptions.
Partnership Collaborations: Hulu partners with other brands, media companies, and entertainment platforms to cross-promote its services and reach new audiences. Collaborations may include co-branded marketing campaigns, promotional offers, and integration with third-party services to increase visibility and subscriber acquisition.
Original Content Marketing: Hulu invests in marketing its original series and exclusive content through strategic campaigns, press releases, social media buzz, and influencer partnerships. By generating excitement and anticipation around new releases, Hulu builds anticipation and drives viewership for its original productions.
Customer Engagement: Hulu prioritizes customer engagement and retention through personalized recommendations, curated playlists, and interactive experiences on its streaming platform. By leveraging data analytics and user feedback, Hulu tailors content suggestions and personalized recommendations to enhance the user experience and encourage continued engagement.
Streaming Platform: Hulu operates its own streaming platform, accessible through its website and mobile apps, where customers can sign up for subscriptions, browse content, and stream shows and movies on-demand. The streaming platform provides a user-friendly interface and seamless viewing experience across multiple devices.
Device Integration: Hulu is available on a wide range of devices and platforms, including smart TVs, streaming media players (such as Roku and Amazon Fire TV), gaming consoles, smartphones, tablets, and web browsers. By integrating with popular devices and platforms, Hulu ensures accessibility and compatibility for its subscribers.
Partnership Agreements: Hulu partners with other streaming services, telecommunications companies, and media providers to expand its distribution network and reach new audiences. Partnership agreements may involve bundling Hulu subscriptions with other services, offering promotional discounts, or integrating Hulu’s content into third-party platforms.
Retail Channels: Hulu offers subscription gift cards and prepaid cards through retail channels, such as physical stores and online retailers. These retail channels provide additional avenues for customers to purchase Hulu subscriptions and access the streaming platform’s content.
Key Highlights
Hulu’s Overview: Hulu is a subscription-based streaming service that offers TV shows, movies, and original content. Founded in 2007, it is wholly owned by The Walt Disney Company.
Subscription-Based Model: Hulu operates on a subscription-based model, offering both ad-supported and ad-free plans. Users can also add extras like Live TV, Disney, ESPN, HBO Max, and more for an additional fee.
Advertising Revenue: Hulu generates advertising revenue through targeted advertising, tailoring ads to viewer interests and behavior. It offers Hulu Ad Manager for businesses to manage and track campaigns.
Market Position: Sensor Tower’s app data put Hulu at about 18% of the SVOD market in the first quarter of 2022, second only to Netflix. Its partnerships and content licensing make it appealing to viewers who aren’t ready to abandon traditional television.
User Experience: Hulu focuses on an exceptional user experience with personalized recommendations, Live TV, offline downloading, and modern web design trends. It uses this experience to encourage customers to subscribe to higher-priced plans.
Strategic Partnerships: Hulu forms partnerships to expand its reach and offer benefits to subscribers. It partnered with Spotify to offer a bundle, and with telco provider Sprint, providing Hulu for free to certain subscribers.
Content Licensing: Since it’s newer to self-produced content, Hulu has established collaborations with content providers such as NBC, ABC, FX, Bravo, and Lionsgate. Partnerships like the one with Fox Entertainment extend its content library.
Connected · Hulu
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Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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