In a major move, Disney has revealed plans to launch a new app that will merge the content of its popular streaming services, Disney+ and Hulu, for U.S. customers. The announcement was made during Disney’s quarterly earnings call, where CEO Bob Iger also announced a forthcoming price increase for the Disney+ ad-free tier.
The new streaming option is set to launch later this year, providing subscribers with a more streamlined and comprehensive content experience. However, Disney intends to maintain Disney+, Hulu, and ESPN+ as standalone platforms, offering customers the flexibility to choose their preferred service.
The decision to combine Disney+ and Hulu content comes in the wake of Disney+ losing 4 million subscribers in the second quarter of 2023, while Hulu gained 200,000 subscribers. CEO Bob Iger explained that the integration aims to offer advertisers greater opportunities while providing subscribers with enhanced content and a more unified streaming experience.
The announcement aligns with comments made by former Disney CEO Bob Chapek in September 2022, suggesting a future with fewer barriers between Disney’s streaming platforms. It also supports reports of Disney’s plans to acquire Comcast’s 33% stake in Hulu by 2024, further consolidating its control over the streaming service.
Disney’s move follows similar strategies employed by competitors, such as Paramount+ joining forces with Showtime and Warner Bros. Discovery merging HBO Max and Discovery+ into a single platform.
While subscribers outside the U.S. already have access to bundled Disney+ and Hulu content, the price hike for Disney+ ad-free subscriptions in the U.S. is a notable development. Disney plans to increase the price of the ad-free tier to better reflect the value of its content offerings. CEO Bob Iger emphasized the company’s commitment to optimizing pricing models to reward loyalty, reduce churn, and drive growth of subscribers.
The forthcoming integration of Disney+ and Hulu content is expected to offer a more comprehensive and seamless streaming experience for U.S. customers while positioning Disney to remain competitive in the evolving streaming landscape.
