The streaming media business is tough. Disney, which has a 30 percent stake Hulu, saw losses of $580 million last fiscal year, according to an SEC filing.
This was, the SEC filing states, “primarily due to a higher loss from our investment in Hulu, partially offset by a favorable comparison to a loss from BAMTech in the prior year.”
BAMTech is the streaming technology that powers ESPN+ and other services. In total, streaming accounted for more than $1 billion in losses for Disney last fiscal year.
Meanwhile, Disney has yet to release its own streaming service, Disney+, which is slated for late 2019. Disney is also planning to increase its investment in Hulu, focusing more on original content and international expansion.
As part of Disney’s buyout of 21st Century Fox, Disney will soon own another 30 percent of Hulu. If the business goes similarly for Hulu this fiscal year, that will only increase Disney’s losses.