New York-based media company Time Warner now holds a 10-percent stake in major streaming TV and movie company Hulu. The company joins 21st Century Fox, Comcast, and Walt Disney as shareholders with the three companies holding a 30-percent share in the streaming service.
Reuters reported that Time Warner’s shares saw 3.2-percent bump following the company announcing that it managed a higher quarterly profit that previously expected. As a result, Time Warner announced that it expected a stronger performance for the year.
The raised profit prediction was also brought on by higher subscriber numbers for the company’s HBO Now. With a significant shift towards the more flexible alternative of streaming TV and movie services, the traditionally cable-based company has made a big move in make sure it has a foothold and remains relevant in the streaming arena.
While HBO Now does have a major hit in episodes of Game of Thrones, a $15 price point for a service mainly riding on one major show will and has faced stiff competition from services that have a lower per month price and more popular and award-winning programs.
As a part of its involvement with Hulu, Time Warner’s Turner family of networks will be a part of the streaming service’s upcoming live streaming service which will launch next year.
Time Warner, which did not disclose the financial terms of the deal, joins Walt Disney Co, 21st Century Fox Inc and Comcast Corp as a shareholder in Hulu.