11 MAY 2023

The Walt Disney Company will launch a single app for Disney+ and Hulu

The Walt Disney Company confirmed the launch of a single app for Disney+ and Hulu in the United States by the end of this year.

11 MAY 2023

  • Facebook
  • X
  • Linkedin
  • Whatsapp

The Walt Disney Company confirmed the launch of a single app for Disney+ and Hulu in the United States by the end of this year, as it looks to leverage the “real value”  of combining general entertainment and Disney+ premium content in retaining and acquiring subscribers. This new app will be available to customers who subscribe to both streaming services, while separate apps will also continue to operate.

“While we will continue to offer Disney+, Hulu and ESPN+ as standalone options, this is a logical progression of our 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,”  said Robert Iger, Chief Executive Officer of The Walt Disney Company.

Although Iger did not confirm if the company is willing to buy out the share of Hulu still owned by Comcast, he did say amicable discussions ahead of a 2024 put option held by Comcast had taken place. Under the terms of the Disney-Comcast deal for Hulu, the “guaranteed floor value” of Hulu is US$27.5 billion, meaning Comcast’s stake is worth a minimum of about US$9.2 billion.

At the same time, Iger said that the group intends to raise the price of the regular Disney+ tier without ads (currently US$10.99/month on a standalone basis) in order to “widen the delta” relative to the ad-supported plan (US$7.99/month). In the United States, the company increased the price of Disney+ without ads in December 2022 by US$3, when it introduced the ad tier at the lower price point. “We plan to set a higher price for the Disney+ ad-free tier later this year to better reflect the value of our content offerings,”  Iger declared.

Disney+ subscribers dropped 2% in the second fiscal quarter to 157.8 million, driven by falls in the United States and India, although global ARPU for Disney+ grew by 13%. This was the second consecutive quarterly drop for the service. Meanwhile, Hulu gained 200.000 net new subscribers in the quarter to reach 48.2 million, and ESPN+ increased by 400.000 to 25.3 million.