Disney CEO Bob Iger has officially confirmed the long-anticipated merger of Disney Plus and Hulu, marking a significant move in the streaming landscape. Subscribers can expect a more seamless streaming experience as the two platforms unite into a single app. The announcement was made during the company’s earnings call for the September quarter, revealing a beta version set to launch in December. Here’s what you need to know about this transformative development in the world of streaming.
Unveiling the Disney Plus and Hulu Merger
The impending merger of Disney Plus and Hulu represents a strategic move by Disney, following its recent confirmation of acquiring Comcast’s stake to become the sole owner of Hulu. Disney will pay at least $8.61 billion for the acquisition, with the final figure subject to Hulu’s market value, determined by the parties’ bankers. Bob Iger affirmed that the unified app will offer a more consolidated streaming experience, catering to bundle subscribers via Disney Plus.
Beta Access in December
The beta version of the Disney Plus and Hulu app is slated for release in December, coinciding with the completion of Disney’s Hulu purchase. While the exact app name remains undisclosed, Iger’s comments suggest it will likely be a Disney Plus version featuring Hulu content. This beta release serves as a precursor to a broader rollout planned for the first quarter of 2024.
Anticipated Impact and Benefits
Bob Iger expressed expectations of increased engagement and ad revenue through the integration of Hulu into Disney Plus. The merger aims to streamline customer acquisition costs and reduce churn, creating a more attractive proposition for subscribers. Iger envisions Disney’s streaming business returning to profitability by the fourth quarter of fiscal year 2024.
Financial Overview and Subscriber Growth
In the September 2023 quarter, Disney reported a net gain of 4 million Disney Plus subscribers, contributing to a user base exceeding 150 million. Despite this growth, the streaming services segment reported a $384 million operating loss for the period, a significant improvement from the $1.4 billion loss in the same quarter of 2022. Disney remains on track to deliver a one-app experience in the U.S., with the final version expected to launch more broadly in the spring of 2024.
International Expansion and Speculations
While the merger focuses on domestic streaming, there are speculations about the potential international expansion of the Hulu brand. The prevailing theory suggests that Disney has refrained from bringing Hulu to other countries to avoid additional payments to Comcast. The recent announcement of Marvel’s Echo TV show availability on Disney Plus and Hulu further aligns with Disney’s evolving plans for Hulu.
Password-Sharing Crackdown
In light of the merger, there’s speculation that Disney’s crackdown on password-sharing, initiated in Canada, might extend to Hulu as well. Combining both services into a single app enables Disney to monitor account access for greater security and accountability.
