On Wednesday, Disney announced the integration of the Disney app with Hulu for users in the United States. The company also announced that it will raise the price of the ad-free Disney+ tier later in the year.
During Disney’s quarterly income call, CEO Bob Iger revealed that the new streaming option will launch later this year. However, the company also plans to keep Disney+, Hulu, and ESPN+ as standalone platforms.
The news comes after Disney+ lost 4 million subscribers in the second quarter of 2023. Hulu gained 200,000 subscribers.
“As we continue to offer Disney plus, Hulu, and ESPN plus as standalone options, this is a logical progression for our [direct-to-consumer] offering that will provide greater opportunities for advertisers while giving subscribers access to more robust and streamlined content, which has resulted in greater engagement,” Iger said during the income call. bigger audience and ultimately leads to a more unified streaming experience.”
Many of us have seen this announcement coming since former Disney CEO Bob Iger hinted at plans for September 2022.
“Right now, if you want to go from Hulu to ESPN+ to Disney+, you have to go from one app to another. In the future, we might have less friction,” Iger told Variety last year.
This also seems to support reports that Disney will buy Comcast’s stake in Hulu by 2024. Currently, Comcast owns 33% and Disney owns 66%.
This integration will come after other moves by competitors, such as merging Paramount + with Showtime, as well as Discovery’s announcement of its new “Max” streaming service, which merges HBO Max and Discovery + into one platform.
Subscribers in select countries outside of the US already have Hulu content bundled with Disney+.
When the streaming service launched its ad-supported plan in December, the cost of its premium tier rose to $10.99 a month, up from $7.99. Disney+ will get another price increase for its ad-free subscription. Soon, subscribers will have to pay more to get ad-free content.
Egger added: “The pricing changes we have implemented have already proven successful, and we plan to set a higher price for our ad-free tier later this year to better reflect the value of the content we offer. As we look ahead, we will continue to improve our pricing model for reward loyalty and limit From the impetus to grow ad-free premium tier subscriber revenue and drive subscriber growth.