1
Credit: Marques Kaspbrak, UnsplashDisney will roll out yet another major change for its streaming service Disney+ in December.
It’s no secret that The Walt Disney Company’s journey into streaming has been anything but smooth. Disney+ debuted in November 2019, pulling in an enormous subscriber base with its treasure trove of Disney classics, Marvel blockbusters, Star Wars epics, and fresh originals like The Mandalorian—a breakout hit racking up over 2 million streams on day one.
However, the streaming service soon started to decline. As subscribers dropped and losses increased, Disney implemented a series of changes to drive new interest in the platform, the latest of which will take effect in December.
From December 4, Disney will integrate ESPN+ into Disney+.
Just like when it integrated Hulu into the platform, ESPN content will be accessible through a specific tile on the service’s homepage.
Subscribers to the Disney+, Hulu, and ESPN+ “trio” package stand to gain the most from the new tile integration. However, Disney plans to broaden the appeal by offering select ESPN programming to all Disney+ users.
CEO Bob Iger and CFO Hugh Johnston unveiled the launch date for the ESPN tile addition during their commentary on Disney’s fiscal fourth-quarter results. Earlier in the day, Disney reported its quarterly numbers, revealing that Disney+ gained 4.4 million core subscribers, pushing its total past 120 million. The platform, which debuted on November 19, 2019, continues to mark milestones nearly five years after its launch.
The service also unveiled a new policy that will allow users to pause their accounts instead of outright canceling their subscriptions during periods of inactivity.
Disney+ Rebounds After Massive Streaming Losses
The positive update follows years of not-so-positive news for Disney+. Within 24 hours of its launch, Disney+ hit an astonishing 10 million subscribers, quickly positioning itself as a formidable rival to Netflix and Amazon Prime Video. However, things began to unravel as COVID-19 wreaked havoc on production schedules, delaying the release of new content.
Disney+ leaned heavily on its nostalgic appeal but lacked the breadth of diverse programming offered by its competitors. As the novelty wore off, subscriber numbers began to slip. By November 2022, mounting losses forced Disney to oust CEO Bob Chapek, who had replaced Bob Iger in 2020. Iger returned to confront a streaming service that had racked up over $11 billion in losses since its inception.
Under Chapek, Disney+ saw operating costs soar, with over $500 million funneled into three Marvel series alone—Moon Knight, Secret Invasion, and the second season of Loki. Aggressive spending and pricing strategies failed to deliver sustainable growth, leaving the platform in dire need of a course correction. By February 2024, subscriber losses reached 1.3 million in a single month.
Despite these setbacks, Disney+ has begun to turn things around. In May 2024, the service defied expectations by posting a $47 million profit—two quarters ahead of schedule—despite projections of a $100 million loss for the same period.
This rebound stems from a series of strategic changes. Disney+ cracked down on password sharing, raised subscription prices, introduced ad-supported tiers, and bundled the platform with Hulu and ESPN+, both under the Disney umbrella.
It also began integrating Hulu content directly into Disney+, with international markets offering this under the “Star” banner. At the same time, Disney—which is currently seeking a more successful successor for Iger—phased out standalone services like Star+ in Latin America and “TV Everywhere” apps, including DisneyNOW and FXNOW.
Are you excited about Disney integrating ESPN+ into Disney+?