Streaming sites that have jumped into original content have found it to be a very expensive endeavor. Netflix is spending upwards of $7 billion this year. Amazon is also spending a pretty penny for its Prime Video content. Now, it’s been revealed Hulu has spent a staggering $2.5 billion this year alone.
The report comes from Variety, which cites Hulu CEO Mike Hopkins. During an event in New York this week, Hopkins made remarks that touched upon Hulu’s investment into original content.
Gathering original content has turned into the best way to differentiate the many different services that are available. Original content is also growing in importance as big companies like Disney take the step toward their own streaming services, cancelling the availability of its vast array of content available on competing platforms.
Netflix currently holds the right to stream Marvel, Star Wars and Pixar content—all are owned by Disney—but the House of Mouse has already stated that it’s ending the deal as soon as it launches its own streaming service in 2019.
Luckily, Hulu is owned by a few major studios, including Disney, so it has less of a chance to run into the problems Netflix and Amazon are encountering. Developing original content makes subscribing to its service much more appealing.
Hulu still lags far behind Netflix and Amazon Prime Video in regards to original shows and movies, but it’s making a name for itself with shows like The Handmaid’s Tale.
Hulu’s subscription numbers should see a bump with younger audiences thanks to its sweet bundle deal with Spotify. Keeping those students subscribed beyond their schooling years is a big incentive for Hulu to spend $2.5 billion on its own original content.