Last year Hulu lost $920 million mostly in efforts to buy more content and build out their new live TV streaming service. That loss should come as no surprise because launching a new live TV. You have to strike content deals, buy new servers, and pay a team of developers to build out the service. Add in the cost of marketing, and it’s no surprise that a new live TV streaming service would lose money in its first year.
What is interesting is a report from the financial service firm BTIG that says Hulu could lose nearly $1.7 billion this year.
This all comes as Hulu is racing to invest in content to take on Netflix and Amazon; however, it seems to be paying off. Recently Fox started to move their shows from Netflix to Hulu.
Hulu and others also seem to be rushing to buy original programming to help build a base of content that may attract new subscribers.
Services like Hulu seem to be willing to spend big right now to build a base of subscribers that will pay off down the road. The question now is will the subscribers show up as they hope.
Source: Variety
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