Two More Major Streaming Services Are Merging Into One
Disney is combining Hulu and Disney+ into a single streaming app later this year. And those who stick with the standalone ad-based Disney+ tier will pay even more going forward.
Disney CEO Bob Iger announced plans for a "one-app experience" within the US during this week's second-quarter earnings call(Opens in a new window), "While we continue to offer Disney+, Hulu, and ESPN+ as standalone options, this is a logical progress of our DTC [direct-to-consumer] offerings that will provide greater opportunities for advertisers while giving bundle subscribers access to more robust and streamlined content," Iger said.
Details are scant, but the new one-app offering will begin rolling out by the end of 2023.
In the meantime, Iger teased a price hike for the ad-free Premium tier, which currently costs $10.99 per month or $109.99 per year. And if it seems like Disney+ just raised its prices, they did. In December 2022, the standard Disney+ plan increased several bucks from $7.99 per month and $79.99 per year, respectively. Those Star Wars and Marvel movies aren't going to pay for themselves.
Disney will also launch the ad-based tier in Europe by year's end, which launched in the US last year for $7.99 per month. Iger didn't say how much European streamers will pay.
"As we look to the future, we will continue optimizing our pricing model to reward loyalty and reduce churn to increase subscriber revenue for the premium ad-free tier and drive growth of subscribers who opt for the lower-cost ad-supported option," Iger said.
Iger didn't elaborate on how Disney will "reward loyalty." So far, long-time subscribers have only been "rewarded" with two prices hikes in the last year.
Merging streaming services seems to be a trend of late,
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