Hulu News: Fast Growth For Digital Video Service, Hits Subscriber Milestone

Online streaming service Hulu, which is owned by media giants Comcast (CMCSA) and Disney (DIS), released data Wednesday that provides a look at how many today are watching visual content and the status of online streaming. The Los Angeles-based company made the announcement ahead of a presentation to advertisers.

Hulu said it reached 26.8 million paid subscribers with 28 million in total customers.

The company also said that it "is now the fastest-growing [subscription video on demand] service in the U.S." and that it "added more than 7.5 million paid U.S. subscribers in 2018 and continues to outpace all competition so far this year."

"In today’s direct-to-consumer world, viewers are demanding better when it comes to TV -- from the user experience to their content choices to the advertising," Hulu CEO Randy Freer said in a statement. "Hulu’s continued growth, as well as the shows and initiatives announced today, reflect our deep investment in product, programming, brand, customer experience and business strategy to ensure that with Hulu, consumers can connect with the stories they love, at the right time and price, on any device."

Netflix (NFLX), Hulu's top competitor, still has a strong advantage with 148.9 million global subscribers.

However, Hulu seems to be making progress against Netflix.

Hulu added close to 4 million new paying customers in the first four months of the year, while Netflix added 5.7 million paid subscribers for all of 2018.

Hulu charges $11.99 a month for ad-free content, while Netflix's basic plan is $9 a month.

Netflix in January announced a price increase that would raise each of its plans between $1 to $2. Hulu in February cut its price of ad-supported subscription plan from $7.99 a month to $5.99 a month.

Disney projects Hulu to lure as many as 60 million subscribers by 2024, according to Reuters.

Hulu notes that 80% of its viewing takes place in the living room and that 40% of viewers binge more than one series a month. Hulu also reported that total hours watched on the platform increased by 75% in 2018.

Hulu on April 15 bought back AT&T’s nearly 10 percent stake in the business for $1.43 billion, giving Hulu a valuation at the time of about $15 billion. Disney owns 60 percent of Hulu and Comcast owns 30 percent.