On an earnings call Disney CEO Bob Iger revealed that before the end of the year subscribers to both Disney+ and Hulu will be able to utilize a single app to experience both streaming services. This one app experience will be found on the Disney+ app. It comes as Disney continues to provide a better user experience and also monetize its direct to consumer businesses.
“While we continue to offer Disney plus Hulu and ESPN plus as standalone options, this is a logical progression of our DTC [direct-to-consumer] offerings that will 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,” Iger shared on the call.
Iger also shared that Disney is continuing to evaluate the pricing structure of its streaming services for both the ad tier and the ad-free tier. While the ad-tier pricing will more or less stay the same, the ad-free tier will be increasing. Iger said, “the pricing changes we’ve already implemented a proven successful, and we plan to set a higher price for our ad-free tier later this year to better reflect the value of our content offerings.”
A specific date for the new one app offering of Disney+ and Hulu was not shared other than it will be before the end of the calendar year. A specific date for a price increase for the ad-free tier of Disney+ was also not shared. The new price after the increase was also not announced.
These updates come as Disney continues to strive and make its streaming services profitable. Disney is also currently evaluating whether it will purchase Hulu when the window for this opportunity with Comcast opens in 2024. At this point, it appears that Disney is leaning towards purchasing the remaining stake in the streaming company from Comcast if the conditions and negotiations are favorable.
“How that ultimately unfolds is to some extent in the hands of Comcast and in the hands of, basically, a conversation or a negotiation that I’ve had with them,” Iger said when answering a question about Comcast. “There seems to be real value in having general entertainment combined with Disney Plus, and ultimately, Hulu is that solution.”
Disney also intends to be more careful in its content creation and curation moving forward as it seeks to make sure that what it invests in has a return on investment in terms of new subscribers and advertisers.
What do you think about this new one app approach for Disney+ and Hulu subscribers? Do you think Disney should purchase Hulu? Share your thoughts and opinions in the comments below!
