The official launch of Disney’s streaming bundle, which combines Hulu and Disney+ into one service, happened on Wednesday morning, marking the end of a successful three-month beta period. The new "duo" plan, Hulu on Disney+, comes at a price $2 higher than each individual subscription alone. This new offering aims to streamline the consumer experience by pooling the content of two large streaming players within a single outlet.
During the beta period, subscriber response was overwhelmingly positive, with about one-third of eligible subscribers participating. Overall viewing, in terms of duration, variety, and percentage of paid subscribers watching, exceeded internal expectations. The combo version features a Hulu “tile” on the home screen alongside Marvel, Pixar, and other original pillars of Disney+.
Hulu currently boasts 49.7 million subscribers, including 4.6 million for Hulu + Live TV, while Disney+ has 111.3 million subscribers, not including its Disney+ Hotstar base of 38.3 million. The exact number of bundle subscribers has not been disclosed by the company. Disney has reiterated that both services will remain available as stand-alones despite the bundle launch.
Bundling has been reshaping the streaming sector, and Disney has additional incentive to leverage Hulu after assuming full control of it. Unlike Disney+, Hulu remains a domestic operation, though its programming is integrated in several territories outside the U.S. The bundle launch is seen as a significant step in Disney's wider technology transformation.
Combining a service known for kids-and-family programming with one known for edgier content like The Handmaid’s Tale has its challenges. To address this, Disney has implemented robust parental controls to ensure a clear distinction between adult and family content. The company is also focused on stimulating viewing in the aggregate, aiming to increase engagement among "Hulu-dominant" subscribers who may not be aware of the content available on Disney+.
The bundle launch comes at a critical time for Disney’s streaming operations, as the company aims to turn a profit in its streaming operation by the end of its fiscal year. This goal was first established in 2019, before the challenges posed by Covid. The company has also faced criticism from activist investors, including Nelson Peltz’s Trian Fund Management, regarding its streaming strategy and succession planning.
Overall, the launch of the Hulu and Disney+ bundle represents a significant step for Disney as it seeks to expand its streaming offerings and drive increased engagement among subscribers.
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