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They’d been courting for a while, but the Disney+ and Hulu marriage is about to become official.
Disney on Wednesday said it’s pressing ahead to fully integrate Hulu into Disney+ for all subscribers.
Disney also said it plans to launch a unified streaming app for Disney+ and Hulu next year. In international markets, Hulu will replace the Star tile on the Disney+ app.
The news, announced during its quarterly earnings, came after Disney finalized a plan last month to take full ownership of Hulu, buying out Comcast’s one-third stake. Disney first became a Hulu shareholder in 2009.
The plans give further credence to speculation among Disney streaming insiders that Disney might eventually phase out the Hulu app altogether. Business Insider’s James Faris reported this week that it had become impossible to ignore the Mouse House’s increasing emphasis on Disney+ over Hulu.
Research house MoffettNathanson’s Robert Fishman wrote in a mid-July note that further integrating Hulu into Disney+ could save the company about $3 billion through “the elimination of duplicative technology and administrative costs.”
In a statement on Wednesday from Disney CEO Bob Iger and its chief financial officer, Hugh Johnston, the executives said the merging of Hulu into Disney+ would give subscribers more choice and 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,” the statement said.
Disney also said Wednesday it would stop reporting quarterly subscriber numbers and average revenue per user stats for its streaming services, which also includes ESPN+. Rival Netflix stopped reporting its quarterly subscriber numbers earlier this year. Disney said it would continue to provide information on the profitability of its entertainment direct-to-consumer segment.
Disney’s stock was down 2% in premarket trading on Wednesday. It’s up 6% so far this year.
More to follow…
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