Why Hulu and Disney+ Merging Is a Mistake

The Future of Disney's Streaming Empire

Disney CEO Bob Iger has made a bold move that signals a major shift in the company’s streaming strategy. The decision to merge Hulu and Disney+ into a single streaming interface is the next logical step following the 2024 integration that added a Hulu tab within the Disney+ app for users with both subscriptions. This move aims to streamline the user experience, but it also raises several questions about the future of Disney’s digital offerings.

As of June 2025, the combined subscriber base of Disney+ and Hulu reached 183 million globally, with the majority—around 128 million—coming from Disney+. While bundle deals between the two services and ESPN+ have been common, the Disney+ brand has clearly gained more traction. In a recent quarterly earnings report, Iger mentioned that improvements to the Disney+ app will include new features and a more personalized homepage, culminating in a unified streaming experience available next year. This suggests that the Disney+ app will be the sole platform, with all Hulu content integrated into it.

Despite the inevitability of this merger, it may not be entirely beneficial for consumers. Rising subscription prices across the streaming market have already placed a burden on viewers, and this consolidation could exacerbate the issue by limiting choices. However, Disney is expected to introduce new subscription tiers as part of the merger, which might offer some relief.

A Complicated Digital Ecosystem

Among the major streaming platforms like Netflix, HBO Max, and Peacock, Disney+ stands out for its complex infrastructure. The platform is designed to prioritize Disney’s most iconic brands, such as Star Wars, Marvel, Pixar, and National Geographic. This approach centers around the idea of the loyal fan, whose consumption habits are driven by their favorite franchises. However, this design often makes it difficult to find specific or less-known content.

Hulu, on the other hand, offers a more traditional and user-friendly interface. It was built to showcase its entire library and promote new content based on genre and relevance. This makes it a cleaner and more accessible platform, which is unfortunate given that it will be absorbed by Disney+.

In the same earnings report, Disney announced it would stop publishing official subscriber counts for its streaming platforms, shifting focus to revenue instead. This change reflects broader industry trends in measuring success, especially in the unpredictable world of streaming. Although Disney's streaming division turned a $346 million profit in the last quarter, the product’s reputation remains a concern.

Challenges Beyond Profitability

Before becoming profitable at the end of 2024, Disney+ incurred over $10 billion in losses. While the financial situation has improved, the streaming landscape remains highly competitive. Disney will need consistent success to recoup its initial investment. Financial performance is just one aspect of the equation; the company must also address the reputation of its streaming platform and its intellectual property.

Major brands like Marvel and Star Wars have struggled in the Disney+ era, with more misses than hits and high budgets that didn’t always yield significant returns. These challenges have extended beyond streaming, affecting box office performances for Marvel Cinematic Universe films and the lack of theatrical "Star Wars" releases. Even Pixar, once a powerhouse, has faced criticism for its content strategies in the streaming era.

Hulu has earned a strong reputation for its original programming and partnerships with FX. It would be a shame to see this goodwill lost as it becomes part of Disney+. While consolidating the two services under the Disney brand may be a smart business move, the potential downsides include higher prices, a less intuitive interface, and possible declines in content quality.

What Lies Ahead?

The merger of Hulu and Disney+ marks a significant turning point for the company’s streaming division. While it could streamline operations and improve the user experience, it also raises concerns about consumer choice and the long-term health of Disney’s digital ecosystem. As the company moves forward, it will need to balance profitability with user satisfaction and maintain the quality of its content to retain its audience.