Disney Shaking up Disney+ (Again) in Just Three Weeks

Disney+ is set to roll out another major update in December, signaling its continued effort to bolster the platform amid a challenging streaming landscape.

Beginning December 4, ESPN+ content will become accessible directly within Disney+, marking the latest move to enhance the service’s value proposition.

Credit: Disney

The integration will feature ESPN+ content housed within a dedicated tile on the Disney+ homepage, similar to the earlier addition of Hulu. Subscribers to Disney’s bundled trio of Disney+, Hulu, and ESPN+ stand to benefit most, but Disney aims to appeal to a broader audience by offering select ESPN programming to all Disney+ users.

CEO Bob Iger and CFO Hugh Johnston revealed the integration during Disney’s fiscal fourth-quarter earnings call. The announcement coincided with a promising update: Disney+ added 4.4 million core subscribers in the quarter, pushing its total to over 120 million.

Credit: Disney

Why Is Disney Changing Disney+ So Much Lately?

This positive momentum contrasts sharply with the service’s earlier struggles. Launched in November 2019, Disney+ achieved a remarkable 10 million subscribers within 24 hours and quickly established itself as a rival to Netflix and Amazon Prime Video. However, the service’s reliance on nostalgia, coupled with delays caused by COVID-19, led to a decline in subscriber numbers and mounting losses.

By November 2022, the platform had accumulated over $11 billion in losses, prompting Disney to reinstate Bob Iger as CEO after a brief tenure by Bob Chapek. Under Iger’s renewed leadership, Disney+ implemented a series of cost-saving measures and strategic changes. These included cracking down on password sharing, raising subscription prices, and introducing ad-supported tiers.

Credit: Mika Baumeister, Unsplash

The integration of ESPN+ represents another step in this strategy. It builds on Disney’s earlier decision to bundle its streaming platforms, integrating Hulu content into Disney+ and phasing out standalone services like Star+ in Latin America. The company also introduced a new subscription feature allowing users to pause their accounts rather than cancel, aiming to retain subscribers during periods of inactivity.

Disney+ has recently shown signs of a turnaround. In May 2024, the service reported a $47 million profit, surpassing expectations two quarters earlier than projected. The addition of ESPN+ content aligns with Disney’s broader strategy to make its streaming offerings more comprehensive and competitive.

Iger previously revealed how the integration of an ESPN tile will boost the service, claiming that it will “have a modest amount of programming. But it’s a start in terms of essentially conditioning the audience, or subscribers to Disney Plus and Hulu, to the fact that sports is going to be there. And it also will help us in terms of overall engagement with our bundle.”

Credit: ESPN

The company also plans to launch a standalone ESPN+ service in 2025, with Iger adding that “our current plan is … if you’re an ESPN Plus subscriber, you’ll be able to get ESPN Plus through that tile.”

As Disney+ approaches its five-year anniversary, the integration of ESPN+ signals the company’s commitment to adapting its platform for a more sustainable future.

What are your thoughts on ESPN+ joining Disney+?