Disney is taking full control of Hulu, VOD Market to Value at US$ 87.1 Bn, and other top news

Few key things that happened around the Ad Tech & Media Tech world this week.

Disney is taking full control of Hulu

Comcast on Tuesday agreed to sell its ownership stake in the streaming video service to Disney. The sale won’t happen for at least another five years, but Disney will take full operational control of Hulu right now. The deal is a sign of how much streaming video has changed in the last few years. Hulu was at one time a joint venture between several media titans: Disney (DIS), 21st Century Fox, Comcast’s NBCUniversal and Time Warner (now WarnerMedia). None of those companies had majority control. Now Hulu is effectively a Disney product. The company became the majority stakeholder in the streaming video service after it closed a deal for most of Fox’s assets in March. Last month, WarnerMedia — now owned by AT&T (T) — agreed to sell its 9.5% interest back to Hulu. (CNN is a division of WarnerMedia.) Comcast (CMCSA) owns roughly a third of Hulu. Under the terms of the deal, Comcast will sell its interest to Disney for Hulu’s fair market value no earlier than 2024. Disney has guaranteed that the sale price will reflect a minimum total equity value of $27.5 billion for Hulu at that time, according to a press release.

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VOD Market to Value at US$ 87.1 Bn

The video on demand market is forecast to gain from rapid penetration of the Internet in undeveloped nations. Fortune Business Insights has recently published a report, titled “Video On Demand Market Size, Share and Global Trend by Technology (SVOD, TVOD, AVOD), Content Type (Sports, Music, TV Entertainment, Kids, Movies), and Geography Forecast till 2025,” which offers an executive-level blueprint of the market. The report has pegged the overall value of the global video on demand market stood at US$ 43.9 Bn in 2017. Progressing at a CAGR of 9% the market is expected to reach a valuation of US$ 87.1 Bnby the end of 2025. North America also held the highest share in the global video on demand market in 2018 and is forecast to witness impressive growth through the course of the forecast period 2018-2025. The increasing demand for video on demand services in the region, coupled with the presence of a high number of service providers are expected to facilitate the expansion of the market.

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PepsiCo To Bring Adtech Team In-House

First reported in The Drum, it is said that the company is creating the new team, to be based in North America, with roles in CRM, digital, data management and adtech. Its directive will be to build “awareness and adoption of the adtech” within PepsiCo in addition to working with external vendors. There is also an objective to create and implement a new digital media purchase strategy around adtech. Leading the initiative will be PepsiCo director of marketing technology and data strategy Mike Scafidi, who took on the role in October last year. Adtech and innovation have been significant areas of investment for PepsiCo in recent times. The company recently trialed a blockchain-based test of programmatic advertising, which improved ad efficiency by 28 percent thanks to the use of smart contracts.

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NBCUniversal Streaming Service Coming in 2020

NBCUniversal has plans to launch a free streaming service in 2020, with one catch: ads will support it. Reports that NBCUniversal would start a streaming service began several years ago, although there was no official word on when that might happen. NBCUniversal joins a market that is already becoming saturated with streaming services. In 2018, Warner Media announced that it would launch a subscription streaming service, which would include the company’s massive library of TV shows and movies. Disney announced the name of its subscription streaming service in 2018, with a launch date of late 2019. Disney has since announced that the service would carry nearly a full library of the company’s movies and TV shows, as well as original Marvel and Star Wars series with a low price point of $6.99 per month. Netflix continues to grow its services, and even recently began incorporating interactivity into some of its offerings, allowing viewers to play choose your own adventure games with some of its content.

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Hotstar, Disney’s Indian streaming service, sets new global record for live viewership

Indian video streaming giant Hotstar, owned by Disney, today set a new global benchmark for the number of people an OTT service can draw to a live event. Some 18.6 million users simultaneously tuned into Hotstar’s website and app to watch the deciding game of the 12th edition of the Indian Premier League (IPL) cricket tournament. The streaming giant, which competes with Netflix and Amazon in India, broke its own “global best” 10.3 million concurrent views milestone that it set last year. Hotstar topped the 10 million concurrent viewership mark a number of times during this year’s 51-day IPL season. More than 12.7 million viewers huddled to watch an earlier game in the tournament (between Royal Challengers Bangalore and Mumbai Indians), a spokesperson for the four-year-old service said. Hotstar said the cricket series had over 300 million overall viewership, creating a new record for the streamer.

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