Disney has revealed its plans to merge content from its Disney+ and Hulu streaming services in the United States.
This move comes after Disney+ experienced a loss of four million subscribers in the first quarter of the year, prompting the company to find ways to make its streaming business profitable. Disney aims to create a “one-app experience” by integrating Hulu and Disney+.
While some current subscribers have expressed concerns on social media about potential price increases, Disney has assured that Disney+, Hulu, and ESPN+ will still be available as separate services. Hulu, co-owned by Disney and NBCUniversal, is known for its adult-oriented television shows like “The Handmaid’s Tale.”
Disney CEO Bob Iger stated that discussions have taken place with Comcast, the parent company of NBC, regarding Disney’s potential full control of Hulu when the current ownership agreement expires next year. Iger believes there is value in combining general entertainment with Disney+ and expressed optimism about Hulu as a possible solution.
Iger has been focused on improving Disney’s financial performance since his return last year, particularly in regard to Disney+. Although losses in the streaming business reduced to $659 million in the first quarter, down from $1.1 billion in the previous quarter, the unexpected decline in subscribers caused a 5% drop in Disney’s shares after hours. The majority of the losses were from the Hotstar service in Asia, which lost streaming rights to Indian cricket matches, and from the US and Canada due to subscription price increases.
Despite the challenges, Iger stated that Disney+ has reached a turning point and expects it to become profitable next year. Disney has made strategic changes throughout the company to realign for sustained growth and success. Earlier this year, Disney reported a decline in streaming subscribers and announced plans to cut 7,000 jobs.
The announcement coincides with a recent strike by Hollywood TV and movie screenwriters, who are demanding better pay and working conditions in response to the industry’s shift toward streaming. This strike has already impacted several Disney projects set for release on Disney+.