Disney’s in the business of making dreams come true, and they’re granting the wishes of Disney+, Hulu, and ESPN+ streamers everywhere by the end of the year.
Disney+ is home to monumental Disney hits like The Mandalorian, Star Wars: The Bad Batch, and Encanto—but those aren’t the only entertainment sources streamers are interested in. While some subscribers have opted for a Disney bundle subscription to access their favorite shows and movies, most viewers haven’t had a comprehensive bundle. A push for better streaming experiences from Disney fans has been echoing for years, and Disney CEO Bob Iger might just be behind a long-awaited solution.
During today’s Quarter Two 2023 earnings call, Bob Iger revealed that a new one-app experience combining Disney+, Hulu, and ESPN is coming. Standalone subscriptions will still be accessible through Disney+, Hulu, and ESPN+, but bundle subscribers can have their favorite series, movies, and sports in one location.
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According to Iger, Hulu will become a tab inside Disney+, which opens massive advertising potential for Disney. It’s a financial power move to attain greater audience engagement while rolling out a user-friendly app.
This news was on the heels of a seemingly steady drop in Disney+ subscribers when an ad-based tier was introduced to the streaming service earlier this year. With the new ad-based tier costing the same as the former ad-free tier, Disney+ took a hit with lost subscribers for the first time ever in Quarter One. Here’s how Disney+ breaks down its prices:
- Disney Bundle Trio Basic for $12.99/month: includes Disney+ (With Ads), Hulu (With Ads), and ESPN+ (With Ads)
- Disney Bundle Trio Premium for $19.99/month: includes Disney+ (No Ads), Hulu (No Ads), and ESPN+ (With Ads)
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Despite dwindling subscribers—four million in Quarter Two—Disney managed to cut streaming losses by $400 million. With advertising wizardry, Disney built around a 20% revenue increase for each user, making the quarter an overall success.
While the question remains whether or not Disney plans to sell its stake in Hulu, the decision to roll Hulu into a bundle with Disney+ suggests a long-term commitment between the two streaming giants. Does this mean Netflix and Amazon Prime subscriptions will plummet? We’ll have to see when the new Trinity of streaming services hits the scene later this year.