Disney CEO Bob Iger has revealed that a single streaming app featuring the best of Hulu and Disney+ will hit our screens by the end of this year.
Talk about the ultimate mash-up!
According to Deadline, the CEO made the announcement during Disney’s fiscal second-quarter earnings call.
You Will Still Get Disney+ And Hulu Like Before
Iger was clear that Disney+, ESPN+, and Hulu will continue to be available as standalone subscriptions.
Disney has offered the three platforms as a discounted bundle since 2020, which has driven subscriber acquisition across all three platforms.
Iger added that Disney would rationalize the investment and volume of streaming content, though he didn’t elaborate.
The CEO also warned that pricing would increase.
Additionally, CFO Christine McCarthy added that the company would have an impairment charge between $1.5 and $1.8 billion for content cuts and streamlining.
Iger found the single app’s advertising opportunity exciting as it can target individuals instead of “spray-and-pray” advertizing.
The network currently has 5,000 advertisers–a number boosted by streaming platforms.
Iger insisted the new app will give advertisers improved opportunities and improve subscribers’ experience through streamlined and robust content.
Ultimately, Iger wants to increase audience engagement and create a unified streaming experience.
Disney took control of Hulu, and speculation has been rife that Disney could develop a consolidated structure.
In 2024, a put/call option will kick into effect for Disney and Comcast–still one-third owners of Hulu.
Disney will need around $9 billion to buy out Comcast, though an arbitrator will determine the precise amount.
News of the one app came after Disney reported impressive results for the year’s second quarter.
However, theme parks drove the profits since Disney+ and Hulu recorded losses.
Iger believes the company is on the right path toward making profits from streaming.
This time next year, we’ll know if Iger made the right choice.
Smart, combine both and charge one subscription
— Gino (@ginostrengthfit) May 10, 2023
I don’t get putting them together but keeping them separate? Aren’t most people using one or the other just going to get the same thing for less money if they only pay for one that has everything?
— Nate (@Ace_Spade4) May 10, 2023
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