Hulu and Disney+ Merge Into One App Next Year—What It Means for You

Disney's Streaming Strategy: A Unified Approach

In June, Disney finalized a deal to pay Comcast’s NBCUniversal nearly $439 million to complete its full ownership of Hulu. This move followed Disney’s previous investment of $8.6 billion for a 33 percent stake in the streaming service. The acquisition has sparked much speculation about how this would affect both Hulu and Disney+. Now, it seems we have at least part of the answer.

Disney CEO Bob Iger and CFO Hugh Johnston recently announced that the Hulu app will be phased out by 2026. Alongside this, they plan to launch a unified streaming service that combines both Hulu and Disney+ into one platform. This decision marks a significant shift in Disney’s strategy as it looks to streamline its offerings and enhance user experience.

The Unified App Experience

During a recent third-quarter Disney earnings call, Iger shared details about the upcoming “unified app experience.” He described it as an impressive package of entertainment that pairs the highest-caliber brands and franchises with great general entertainment, family programming, news, and industry-leading live sports content. According to CBS News, this new offering is designed to provide subscribers with more choice, convenience, quality, and enhanced personalization.

The announcement comes as combined subscriptions for Disney+ and Hulu reached 183 million, an increase of 2.6 million from the second quarter. Iger and Johnston emphasized that this unified approach will help Disney grow profitability and margins in its entertainment streaming business. They highlighted potential benefits such as higher engagement, lower churn, advertising revenue, and operational efficiencies that could lead to savings reinvested into the business.

“I imagine down the road it may give us some price elasticity as well that we haven’t had before,” Iger added, hinting at possible future pricing strategies.

Pricing and Subscription Options

While the exact impact on pricing for subscribers remains unclear, current basic (ad-supported) plans are priced at $9.99/month for both Hulu and Disney+. Initially, customers will still have the option to subscribe to each service separately if they prefer. However, Disney+ already offers a bundled subscription with Hulu for $10.99/month with ads or $19.99 without ads.

Disney is also expanding its streaming offerings with the launch of a new ESPN app this month. The Walt Disney Company owns ESPN, but it recently announced that the NFL is taking a 10 percent equity stake in ESPN. In exchange, ESPN will acquire the league's traditional NFL Network and certain rights to the fan-favorite RedZone Channel, among other media assets.

New ESPN App Launches in August

As Variety reported, the new ESPN streaming app will launch on August 21. The app will cost $29.99/month and include access to a wide range of channels such as ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNews, ESPN Deportes, ESPN on ABC, ESPN+, ESPN3, SECN+, and ACCNX. There will also be an initial promotion bundling ESPN, Disney+, and Hulu for $29.99/month for the first 12 months.

Speculation has been rife about whether the new ESPN app will include sports betting abilities, statistical analysis, and a personalized SportsCenter experience. However, no specifics have been confirmed yet.

This strategic move by Disney reflects its ongoing efforts to consolidate its streaming services and offer a more cohesive and competitive platform for consumers. As the company continues to evolve, it remains to be seen how these changes will shape the future of streaming and what additional features and services might emerge in the coming years.