• by Wayne Friedman , July 10, 2023

Given the TV ad slowdown so far this year, as well as some content reductions, Disney/Comcast-owned Hulu is projected to see a 10% decline to $3.12 billion this year vs. 2022, according to new estimates from MoffettNathanson Research. 

However, the analysts project Hulu’s ad business will 5% rise to $3.27 billion next year, and another 5% to $3.44 billion in 2025.

The streamer’s more dominant subscription revenues will climb at an even faster rate, rising 12% in $8.17 billion this year, and 9% to $8.94 billion next year.

Craig Moffett, senior research analyst and co-founder of MoffettNathanson, says Hulu will benefit from “continued price increases and increased ad monetization” over the near term. 

This will come from adding a projected two million or more subscribers over the next couple of years, giving Hulu 55.2 million total customers: 49.7 million subscription video on demand (SVOD); and 5.4 million for Hulu + Live TV, the company's virtual pay TV provider.

Working out the Hulu co-ownership of Walt Disney/Comcast Corp, should help Hulu’s growth, Moffett says.

Speculation continues to be that Comcast Corp. will sell its minority share in the company for $9 billion to $10 billion.

Over the last year-and-a-half, Comcast has been removing its TV and programming from Hulu to help grow its own Peacock streaming service.

Moffett says this has contributed to a reduction in advertising at Hulu over the last 12 months.