Disney has announced that it will acquire a 33 percent stake in Hulu for $8.6 billion, writes David Hamilton for Fortune.

With this deal, Disney will have undisputed control of the streaming service.

This is a further extension of Disney’s control over Hulu, which began in 2019 when Comcast ceded its authority to the streaming service and effectively became a silent partner. 

In four words, the most recent deal was done to “further Disney’s streaming objectives.”

Hulu began its operations in 2007 and quickly evolved into a streaming services vehicle.

Disney has been the main cog in the streaming services industry, offering shows from ABC, ESPN, and the Disney Channel. It also acquired 21st Century Fox. More recently, it launched Disney+ and ESPN+.

The streaming services industry has seen increased pressure due to expansion, low prices, and widespread password sharing.

As a result, Disney has its own plans to crack down on non-paying users and has also raised prices for ad-free versions of Disney+ and Hulu between 20 percent to 27 percent. 

Disney CEO Bob Iger noted that advertising revenue is picking up.

“We’re obviously trying with our pricing strategy to migrate more subs to the advertising supported tier,” he said. 
Learn more about Disney’s acquisition of Hulu at Fortune.

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