That means Adult Swim, Boomerang, Cartoon Network, CNN, TBS, TNT, TruTV, and Turner Classic Movies are all coming to Hulu’s live streaming service. The ability to count its offerings among potential live over-the-top streaming channels will definitely add to the niche appeal of any Hulu cable replacement bundle that makes an appearance next year. The company’s Warner Brothers film and TV production unit saw revenue of $2.7 billion, a 19% plunge. Time Warner previous year launched HBO Now, a stand-alone streaming service for the channel.
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The new Hulu service is an attempt by its traditional entertainment company owners to secure their footing in television’s digital future, where streaming has become the norm and competition from deep-pocketed rivals like Netflix and Amazon has intensified.
According to the print, the company earned revenue of $7 billion during the quarter in line with consensus estimate of $7.05 billion.
Hulu will bow a new cable streaming service in coming months that’s created to appeal to cord cutters or shavers, the people who have canceled or drastically reduced cable subscriptions to save money.
“We had a strong first half of 2016, which puts us ahead of our original goals for the year”, Time Warner chairman and CEO Jeff Bewkes said in a statement.
The move could boost the viability of an online television service that Hulu is expected to launch next year as an alternative to cable TV.
However, the investment “underscores Time Warner’s commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe”, he said.
Its shares rose $2.61, or 3.4 percent, to $78.93 in premarket trading about 90 minutes before the market open.
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.
The chart below gives an idea of each company’s ownership, assuming that Time Warner’s investment equally diluted each existing shareholder.
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The company’s net income fell to US$951 million, or US$1.20 per share, in the second quarter ended June 30, from US$971 million, or US$1.16 per share, a year earlier.
