Time Warner joins Hulu party with 10% stake
Disney, Fox and Comcast all have stakes in the video streaming service
- The media giant also owns cable channels such as CNN, CBS and TNT
Updated : 14:16
Hulu has another major media giant on its side as US company Time Warner has bought a 10% stake in the video streaming business.
The service's star has been on the rise and is now seen as a serious challenger to Netflix's apparent dominance in the market.
The deal will see an influx of Time Warner programming being supplied to Hulu, such as shows originating from Turner Broadcasting channels CNN, CBS, TNT and Cartoon Network.
“This investment fits our strategy like a glove,” Time Warner Chief Executive Jeff Bewkes said Wednesday on a conference call with analysts to discuss earnings.
Hulu was launched nearly a decade ago by NBCUniversal, now owned by Comcast, and 21st Century Fox. Walt Disney Co. later joined the project, and now Time Warner adds to the list of heavyweights already involved.
Media firms are now scrambling to innovate as a seismic shift away from traditional television packages has left them in danger of getting left behind.
New York-based Time Warner also announced Wednesday that it's boosting its full-year adjusted profit outlook to a range of $5.35 to $5.45 per share. Its prior guidance was for $5.30 to $5.40 per share.