Disney CEO Bob Iger and CFO Hugh Johnston said during the earnings call, “Today, we are announcing a major step forward in strengthening our streaming offering by fully integrating Hulu into Disney+. This will create an impressive package of entertainment, pairing the highest-caliber brands and franchises, great general entertainment, family programming, news, and industry-leading live sports content in a single app.”
The two Disney executives said that work has already started on enhancing the technology. Improvements will be made to the Disney+ app, including the addition of “exciting new features and a more personalized homepage.” A standalone ESPN streamer, priced at $29.99 per month, will debut on August 21st.
A Disney representative told Variety that subscribers will be able to purchase a standalone Hulu subscription and a standalone Disney+ subscription. Disney’s Iger said that the single Disney+ app will offer an “improved consumer experience,” which will lower churn and keep subscribers from leaving for other streaming services. With both streamers on one tech platform, Iger expects Disney to benefit from cost synergies. In addition, Disney already sells ads together for Disney+ and Hulu. Once they’re combined into one app, Disney can offer bundled ad deals.
The decision to sew together Hulu and Disney+ came when Disney closed on its purchase of Comcast’s one-third ownership of Hulu in June. While Comcast wanted $13 billion for its one-third stake in the streamer, a third-party banker lowered the price tag in arbitration to $9 billion.
By creating a truly differentiated streaming offering, we will be providing subscribers tremendous choice, convenience, quality, and enhanced personalization. This will enhance our ability to continue to grow profitability and margins in our entertainment streaming business through expected higher engagement, lower churn, and advertising revenue potential, as well as operational efficiencies that over time may result in savings that we can reinvest back into the business.”
-Disney CEO Bob Iger, CFO Hugh Johnston
Hulu’s live television offering will be combined with Fubo and run as a joint venture that Disney will control as the majority owner. Sometime next year, Hulu + Live TV will be integrated into Disney+.
Disney also said on Wednesday that following the decision made by Netflix, it will no longer report streaming subscriber numbers for Disney+, Hulu, and ESPN+.
