Disney plans to combine Hulu content and Disney+ content on one app for U.S. subscribers, CEO Bob Iger announced Wednesday. The new app is planned for initial rollout by the end of the year and will only initially be available to people who have subscriptions to both streaming services.
“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,” Iger said on an earnings call, as reported by The Hollywood Reporter, calling the advertising potential of the combined platform “incredibly exciting.”
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Iger also called Disney’s purchase of Comcast’s stake in Hulu not “fully determined,” but said he sees a benefit in retaining general entertainment content such as that on Hulu in combination with Disney. “I mentioned on the first earnings call that I did after I came back that everything was on the table. And in fact, everything was on the table,” Iger said. “But I’ve now had another three months to really study this carefully and figure out what is the best path for us to grow this business and it’s clear that a combination of the content that is on Disney+ with general entertainment is a very strong combination from a subscriber perspective, from a subscriber acquisition-subscriber retention perspective and also from an advertiser perspective.”
“How that ultimately unfolds is to some extent in the hands of Comcast and in the hands of a basically a conversation or a negotiation that we have with them,” Iger continued, noting that Disney has had “cordial” conversations with Comcast about the issue. Hulu’s ownership will really come into play starting in January 2024, when Disney, the majority stakeholder, is able to use its buy option to force Comcast to sell its one-third stake, while Comcast in turn can use its put option to require Disney to buy its stake.
Iger indicated during Wednesday’s call that he’s interested in making Hulu more of a part of Disney, noting that it plans to increase prices on the ad-free tier later this year to “better reflect the value of our content offerings.” The company had previously increased prices in a move Iger said has “proven successful.”
