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The analysis highlights next-day availability of hit shows, exclusive content and increased investment, and Hulu’s dual advertising-and-fee revenue model that supports higher ARPU and stronger valuation potential. Updated valuation estimates and a reiterated Overweight stance for FOXA frame Hulu’s subscriber and advertising growth outlook, including an ad-free tier launch and overall equity implications.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/jpm-equity-research-report-hulu-21st-century-fox-hulu-steadily-building-a-streaming-empire/253247/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/jpm-equity-research-report-hulu-21st-century-fox-hulu-steadily-building-a-streaming-empire/253247.png","ImageObject",442,249,{"name":88,"@type":89},"วิน","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-30","2026-09-13",true,{"@type":98,"interactionType":99,"userInteractionCount":15},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What strategic changes has Hulu made that strengthen the research view of its asset value?","Question",{"text":108,"@type":109},"The report highlights more aggressive content investment and the launch of a higher priced ad-free tier, which increase conviction in Hulu’s upside over time.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Why does the report argue Hulu has a competitive advantage versus peers?",{"text":113,"@type":109},"It credits Hulu’s next-day availability of broadcast shows from its owners, plus a growing list of exclusive content and continued investment in original programming that can drive subscriber growth.",{"name":115,"@type":106,"acceptedAnswer":116},"How does Hulu’s dual revenue model affect its profitability and valuation expectations?",{"text":117,"@type":109},"The report states that advertising-supported revenue can yield higher ARPU than SVOD peers and may lead to a higher valuation, supported by estimates of ad revenue per subscriber per month.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},253247,1789264885,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":15,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":125,"read_time":8},2336475104736,"https://ap-avatar.wpscdn.com/avatar/22000c4c5e0e5b17e70?x-image-process=image/resize,m_fixed,w_180,h_180&k=1786591360781797222","21st Century Fox  \nHulu Steadily Building a Streaming 'Empire' as New Tier Debuts and More Hits Roll On  \nIn our recent note on 21st Century Fox,“Good Entry Point for High Quality Media Play,” we highlight the opportunity for patient investors considering the value of FOXA’s strong asset base, noting that Hulu in particular could present notable upside down the road. Hulu has since made further strategic decisions which increase our conviction in the value of this asset, including more aggressive investment spending in content and the launch of a higher priced ad free tier. In this note we take a closer look at the streaming video industry, Hulu’s competitive positioning and strategic outlook as well as its potential value. While equally owned by FOX, DIS and CMCSA, we highlight this asset in the context of FOXAas the smallest of these companies, therefore having the biggest relative contribution.  \n􀀄 Next day availability of hit shows sets Hulu apart. With or without an ad model, airing broadcast shows from its three owners on a next-day basis provides a sustainable competitive advantage, in our view.  \n􀀄 Fear The Walking Dead, Seinfeld & Empire exclusives beginning to set higher bar for the service. Recent step up in investments signals an increased commitment to adding quality content and growing the subscriber base. This expanding list of exclusive content combined with next day streaming and ongoing investment in original programming will likely continue to drive subscriber growth, making Hulu much more competitive with Netflix.  \n􀀄 Dual revenue stream of advertising and fees provides a more lucrative model for digital distribution. Hulu’s ad supported business model yields a higher ARPU compared to SVOD peers Netflix and Amazon, and potentially leads to a higher valuation, as we estimate the service generates >$7 per sub/month in ad revenue (albeit split with content owners), nearly the entire retail price of Netflix’s lowest tier. Equally important, Hulu’s dual revenue stream replicates the traditional bundle and also provides an outlet for advertisers willing to pay high CPMs for premium online video with high viewability.  \nNorth America Equity Research  \n30 September 2015  \nOverweight FOXA, FOXA US  \nPrice: $25.80  \nPrice Target: $33.00  \nMedia  \nAlexia S. Quadrani AC (1-212) 622-1896  \n[alexia.quadrani@jpmorgan.com](alexia.quadrani@jpmorgan.com)[ ](alexia.quadrani@jpmorgan.com)Bloomberg JPMA QUADRANI \u003CGO> James Kopelman  \n(1-212) 270-5899  \n[james.kopelman@jpmorgan.com](james.kopelman@jpmorgan.com)  \nDavid Karnovsky, CFA  \n(1-212) 622-1206  \n[david.karnovsky@jpmorgan.com](david.karnovsky@jpmorgan.com)  \nJulia Yue  \n(1-212) 622-9896  \n[julia.yue@jpmorgan.com](julia.yue@jpmorgan.com)  \nJ. P. Morgan Securities LLC  \n\n| Price Performance |  |  |\n| --- | --- | --- |\n| $ | 40\u003Cbr>36\u003Cbr>32\u003Cbr>28\u003Cbr>24 | |\n| Sep-14 Dec-14 Mar-15 Jun-15 Sep-15\u003Cbr>~~ ~~ FOXA share price ($)\u003Cbr>~~ ~~ S&P500 (rebased) |  |  |\n\nYTD  \n1m  \n3m  \n12m  \nAbs  \nRel  \n-32.8%-24.3%  \n-5.8%-1.3%  \n-20.1%-11.7%  \n-24.5%-19.8%  \nTwenty-First Century Fox, Inc. (FOXA;FOXA US)  \n\n| FYE Jun | 2013A | 2014A | 2015A | 2016E |\n| --- | --- | --- | --- | --- |\n| EPS-Recurring ($) |  |  |  |  |\n| Q1 (Sep) | 0.38 | 0.33 | 0.39 | 0.39 |\n| Q2 (Dec) | 0.35 | 0.33 | 0.41 | 0.42 |\n| Q3 (Mar) | 0.32 | 0.47 | 0.42 | 0.46 |\n| Q4 (Jun) | 0.31 | 0.43 | 0.39 | 0.45 |\n| FY | 1.36 | 1.57 | 1.60 | 1.72 |\n| CY | 1.46 | 1.59 | 1.66 | 1.95 |\n| Bloomberg EPS FY ($) | 1.44 | 1.53 | 1.70 | 1.82 |\n\nSource: Company data, Bloomberg, J. P. Morgan estimates.  \n\n| Company Data |  |\n| --- | --- |\n| Price ($) | 25.80 |\n| Date Of Price | 29 Sep 15 |\n| 52-week Range ($) | 39.27-22.81 |\n| Market Cap ($ mn) | 53,148.00 |\n| Fiscal Year End | Jun |\n| Shares O/S (mn) | 2,060 |\n| Price Target ($) | 33.00 |\n| Price Target End Date | 31-Dec-16 |\n\nSee page 28 for analyst certification and important disclosures.  \nJ. P. Morgan does and seeks to do business with companies covered in its research reports. As ","cbCaiqYwwUKqrihz","https://ap.wps.com/l/cbCaiqYwwUKqrihz","pdf",600308,31,"English","# North America Equity Research\n## Hulu competitive positioning and strategic outlook\n## Revenue model: advertising and fees\n## Valuation update and FOXA rating","[{\"question\":\"What strategic changes has Hulu made that strengthen the research view of its asset value?\",\"answer\":\"The report highlights more aggressive content investment and the launch of a higher priced ad-free tier, which increase conviction in Hulu’s upside over time.\"},{\"question\":\"Why does the report argue Hulu has a competitive advantage versus peers?\",\"answer\":\"It credits Hulu’s next-day availability of broadcast shows from its owners, plus a growing list of exclusive content and continued investment in original programming that can drive subscriber growth.\"},{\"question\":\"How does Hulu’s dual revenue model affect its profitability and valuation expectations?\",\"answer\":\"The report states that advertising-supported revenue can yield higher ARPU than SVOD peers and may lead to a higher valuation, supported by estimates of ad revenue per subscriber per month.\"}]","JPM Equity Research Report Hulu - 21st Century Fox Hulu Steadily Building a Streaming Empire | PDF"]