NEW YORK (TheStreet) -- Shares of Walt Disney (DIS) and Twenty-First Century Fox (FOXA) were lower in early afternoon trading on Tuesday as Hulu signed affiliate agreements with each company to offer their programming on its upcoming TV streaming service, scheduled to launch in early 2017.

Disney owns ABC, ESPN, Freeform and the Disney Channel, while Twenty-First Century Fox owns Fox News, Fox Sports, FX Networks and National Geographic.

Under the terms of the deal, Santa Monica, CA-based Hulu will be able to offer the companies' networks for both live and on-demand viewing on its new streaming service.

Earlier this year, Hulu signed a similar deal with Time Warner (TWX) to stream TNT, TBS and CNN and other networks both live and on-demand.

Hulu's new service will compete with Dish Networks' (DISH) SlingTV, Alphabet's (GOOGL) potential Google Unplugged and AT&T's (T) upcoming DirecTV Now service.

Last month, Google reportedly signed a deal with CBS (CBS) to broadcast the network on its Unplugged platform, sources told the Wall Street Journal.

Hulu is a video subscription joint venture between Disney, Twenty-First Century Fox, Comcast's (CMCSA) NBCUniversal and Time Warner.

Separately, TheStreet Ratings objectively rated Disney stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

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