Disney is set to introduce significant changes to its streaming services, which include Hulu, Disney+, and ESPN+. These changes entail content consolidation and a price adjustment for its ad-free plan.
During an earnings call on Wednesday, CEO Bob Iger revealed the company’s intention to launch a one-app experience. This combines the vast content libraries of Hulu and Disney+ into a single platform. Iger also emphasized the positive potential of merging Disney+’s specialized content with broader entertainment offerings.
Disney to revise pricing structure
In addition to the content integration, the company will be revising the pricing structure of its ad-free tier on Disney+. This move aims to accurately reflect its content offerings’ value. Currently priced at $10.99 per month, the updated cost for the ad-free plan has yet to be disclosed.
The impact of this pricing adjustment on subscriber counts remains uncertain. Statista also reports that between Q4 2022 and Q1 2023, it experienced a decline of approximately three million subscribers after raising the prices of both Hulu and Disney+. The recently released earnings report revealed a further loss of four million subscribers, indicating a downward trend for three consecutive quarters.
Timeline for the merger
According to Iger, the integrated streaming app is expected to be rolled out by the end of the calendar year. Alongside this announcement, the company also stated its intention to evaluate content across its streaming platforms, with a view to making strategic cuts that align with its evolving content curation approach.
Its decision to unify its streaming services comes on the heels of HBO and Warner Bros Discovery’s announcement of their joint streaming service called Max, scheduled to launch on May 23rd.