May 12, 2023 — 2 min read — 144 Views — Last Updated: May 12, 2023
Excited about the merge of your favorite streaming services? Yes, you heard that right! Hulu and Disney+ content will soon be bundled into one app, according to Disney’s CEO.
In a groundbreaking move that is set to reshape the streaming landscape, Disney has announced its plans to acquire full control of Hulu and merge it with its popular streaming service, Disney+.
This strategic decision aims to create a unified streaming experience for users and provide greater opportunities for advertisers. The integration of Hulu’s vast content library, which predominantly caters to a more mature audience, with Disney’s family-friendly offerings is expected to captivate a wider range of viewers.
During the Quarter 2 earnings call, Disney CEO Bob Iger confirmed the long-awaited acquisition, expressing his enthusiasm for the potential of this combined platform. He stated:
“While we continue to offer Disney+, Hulu, and ESPN+ as standalone options, this is a logical progression of our DTC (direct-to-consumer) offerings that will result in a more unified streaming experience.”
Disney has been steadily increasing its stake in Hulu since its initial launch in 2007. With the recent acquisition of 21st Century Fox, Disney obtained a 60% ownership stake in Hulu. Now, by acquiring the remaining stake from Comcast, Disney aims to consolidate its control over the streaming service, opening the doors for new possibilities.
Hulu and Disney+ are expected to combine by the end of 2023, giving customers the ease of viewing both platforms’ content through a single app. This integration will deliver a more simplified experience by reducing the need to switch between several applications to enjoy a variety of entertainment.
This merger provides a great opportunity for advertising to widen its reach. Advertisers will have access to a significantly larger audience thanks to Hulu’s extensive variety of movies and shows. This combination, when combined with Disney’s large subscriber base, presents an intriguing platform for advertisers to engage with an array of consumers.
In addition to content integration and advertising, Disney also plans to make adjustments to Hulu’s subscription plans. Currently, Hulu’s pricing plans offer an ad-supported plan priced at $7.99 per month and an ad-free plan for $14.99 per month. As the combined Disney+ and Hulu platforms offer enhanced value and a richer content library, subscribers may see changes in pricing in the near future.
The decision to merge these two streaming services is a critical one for Disney, especially as they navigate the uncertain territory of acquiring Comcast’s stake in Hulu. The existing agreement allows for a potential buyout in January 2024, but final decisions are still pending.
However, Disney’s acquisition of full control of Hulu and the subsequent merger with Disney+ represents a significant step forward. Disney is leveraging both platforms to offer binge-watchers of all ages and preferences an exceptional streaming experience. Streaming at its peak: something for everyone, all in one place.
“The advertising potential of this combined platform is incredibly exciting,” Iger added during their Quarter 2 earnings call.