Disney+ and Hulu Apps to Merge
A beta test of the combined app will launch for some subscribers before the end of the year.
Disney+ and Hulu content will be merging into a single streaming platform. CEO Bob Iger said during Disney's quarterly earnings call Wednesday that a beta version of the previously announced combined Disney+/Hulu app will launch in December for subscribers of the two-service bundle, followed an official launch in early spring 2024.
Speaking to Wall Street analysts, Iger said, "we remain on track to roll out a more unified one-app experience domestically, making extensive general entertainment content available to bundle subscribers via Disney+." The merger will make kid-friendly titles like Bluey just clicks away from more adult-oriented titles such as American Horror Story and Family Guy. However, Iger said launching a beta version of the Disney+/Hulu app next month, parents will have enough time to set up parental control.
"We are basically putting it in beta so that we can prepare parents, largely, to basically implement parental controls, because you'll be able to access Hulu programming on the same app," Iger said, according to Deadline.
According to Iger, it is expected that the new merged app "will result in increased engagement, greater advertising opportunities, lower churn, and reduce customer acquisition costs." He added, "we have opportunities with upsell capabilities and increasing engagement" with the one-app experience," also noting that "we found that where we bundle, we lower churn. And again, these are steps that are all taken to make [streaming] a great business."
The upcoming launch comes after Iger first teased in May that Disney was planning to combine Disney+ and Hulu content on one app for U.S. subscribers. At the time, Iger said, "while we continue to offer Disney+, Hulu and ESPN+ as standalone options, this is a logical progression of our DTC 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." He called the advertising potential of the combined platform "incredibly exciting."
The combined app also comes on the heels of Disney acquiring full control of Hulu. Earlier this month, the company announced it would buy Comcast's 33 percent stake in Hulu for more than $8 billion in a purchase that will give Disney full ownership of the streamer. Variety reports the deal still needs to be closed.