A great deal was said during Disney’s earnings call today, but one of the biggest announcements they made is that Disney+ and Hulu, which up until now have been two distinct streaming services, will be combined on one app by the end of the calendar year.
“While we continue to offer Disney+, Hulu and ESPN+ as standalone options, this is a logical progression of our DTC offerings,” CEO Bob Iger said on the call.
He asserted that this move would “provide greater opportunities for advertisers while giving bundle subscribers access to more robust and streamlined content, resulting in greater audience engagement and ultimately leading to a more unified streaming experience.”
Some fans have reacted negatively to the announcement, wondering aloud how long it will be until we pay for the cable streaming version.
Let's just go back to cable. In retrospect, it wasn't so bad…
— 𝚂𝚘𝚌𝚛𝚊𝚝𝚎𝚎𝚓🗿 (@TheSocrateej) May 10, 2023
Great, so excited for the most confusing user experience of all time. Can’t wait to bounce from Peter Pan to Breaking Bad with one misclick.
— Kendall (@herleorr) May 10, 2023
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Others have praised it as a smart move, saying it was only the next logical step from each business and user’s perspectives.
They already bundle
It’s only logical, one price instead of two. pic.twitter.com/mlGUCMyrQ3
— @Maybe: Jay P. (@PRBucsFan) May 10, 2023
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Combining the services has been discussed before, but it’s tricky because while Disney owns two-thirds of Hulu’s shares, Comcast owns the other third. The two companies have each been unsure about how the brand fits into their future – Iger had said in an interview with CNBC on February 9 that he wanted to move away from “undifferentiated entertainment.”
Comcast also has an option that dictates that, as of January 2024, they have the right to force Disney to buy its stake in Hulu, and likewise, Disney has an option to force them to sell. In light of this, Disney has been studying Hulu’s business model very carefully – and it seems Iger and the board have come to the conclusion that incorporating Hulu into their brand would ultimately be a good tactic for the company to take at this time.
We have very strong original programming, actually highly awarded original programming, some delivered by FX, which is a great not only producer but brand, and we also have a good library, so it’s a solid platform. And it’s also a very attractive platform for advertisers. It’s already proven to be valuable for them and advertising is proven to be valuable for us.
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This move is similar to HBO’s move to combine its own flagship app with Discovery+, which they also own, but will ultimately be less of a shift for customers because while Max will necessitate that all users pay between ten and twenty dollars a month, depending on ad tier, to access any content on either app. Disney’s new app, conversely, will simply offer the two separate services in one place; users will still have the option to pay for one and not the other if they prefer.
Would you like it if Hulu and Disney+ were both on the same app? Let us know in the comments below.