Disney is set to merge Hulu and Disney+ into a single app by the end of the year, according to CEO Bob Iger.
The move is seen as part of the company’s broader strategy to dominate the streaming market and compete with established players such as Netflix and Amazon Prime Video.
By combining content from its two platforms, Disney aims to provide a more streamlined and unified experience for its viewers while creating more opportunities for advertisers to reach a larger audience.
Despite the merger, both Hulu and Disney+ will continue to be available as standalone services, while consumers in North America can currently subscribe to a package that bundles all three platforms together at a discounted rate.
Iger emphasized that the move was a logical progression of Disney’s direct-to-consumer offerings and would provide more robust and streamlined content to bundle subscribers.
This is expected to increase audience engagement, leading to a more unified streaming experience and greater opportunities for advertisers.
The announcement comes amid months of speculation over the future of Hulu. Analysts had wondered whether Disney would sell the streaming service, which offers a mix of adult-oriented original content and older titles drawn from Disney’s film and TV library, as well as assets it acquired in 2019 from Rupert Murdoch’s 21st Century Fox studio.
Iger had remained non-committal about the future of Hulu, stating that “everything is on the table right now” and declining to speculate on whether Disney would buy or sell the service.
Disney currently holds a 67% stake in Hulu, with the remaining 33% controlled by Comcast, the parent company of NBCUniversal and NBC News.
However, the merger of Hulu and Disney+ into a single app could have wider implications for the streaming industry as a whole. It highlights the growing importance of providing a seamless and user-friendly experience to capture and retain subscribers in a crowded and competitive market.
Disney+ and Hulu to Merge Content
Disney’s vast library of content, which includes popular franchises such as Star Wars, Marvel, and Pixar, and licensed content from other studios, is a significant advantage in the streaming market.
The company’s acquisition of 21st Century Fox’s entertainment assets in 2019 further expanded its content portfolio, providing it with access to popular TV shows such as The Simpsons and Modern Family.
By merging Hulu and Disney+, the company aims to leverage this extensive library of content and create a more comprehensive and integrated streaming offering.
The move is part of a broader shift towards streaming services, with more consumers opting for on-demand content over traditional cable TV.
The COVID-19 pandemic has accelerated this trend, with people spending more time at home and consuming more streaming content.
As a result, streaming services are becoming increasingly important for media companies, with many launching their own platforms or partnering with existing ones.
Disney and Comcast have an agreement that could potentially force Disney to buy out Comcast’s stake in Hulu or vice versa, starting in January.
It is not yet clear whether the merger of Hulu and Disney+ will result in price increases for consumers or how the two services will handle differentiating between adult and kid-friendly programming on the combined app.
Hulu has been gaining ground in the streaming market with its critically acclaimed original programming such as “Only Murders in the Building” and “The Dropout,” an eight-part miniseries about Elizabeth Holmes and the Theranos scandal.
Despite this success, Hulu’s reach is still limited to North America with only around 48 million subscribers, compared to more dominant players like Netflix.
On the other hand, Disney+ has 157.8 million global subscribers, which is still a significant number, but it is 4 million less than it had at the end of last year.
In conclusion, Disney’s announcement to merge Hulu and Disney+ into a single app reflects the company’s ongoing efforts to dominate the streaming market and provide a more seamless and user-friendly experience to its viewers.
