Disney Plus and Hulu are joining forces to truly take on Netflix
What will this new super streamer be called?
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Disney Plus and Hulu are set to merge into one super streaming service in a bid to combat Netflix’s dominance of the industry.
Announced by Disney CEO Bob Iger during the company’s Q2 2023 earnings call (as reported byMotley Fool),Disney Plusand its sister streamerHuluwill join forces by the end of the year.
Essentially, Disney Plus users will begin to see Hulu’s extensive suite of movies and TV shows make its way onto the former at an as-yet-announced date. Clearly, Iger hopes that his so-called “one-app experience”, will help the company overthrowNetflixin the never-ending streaming wars.
There are caveats to this announcement, though. Firstly, Disney’s two streaming platforms will continue to be offered to consumers as separate entities, with Iger confirming that Disney will “continue to offer Disney Plus, Hulu, and ESPN Plus as stand-alone options”.
Next, Disney’s new super streamer will only launch in the US. Hulu isn’t available elsewhere, so Disney Plus subscribers in the UK and Australia aren’t likely to be affected by the change. Currently, Hulu Originals, such asOnly Murders in the BuildingandBarbarian, are delivered toDisney Plus UKand Disney Plus Australia viaDisney Plus Star, a sub-channel available on the service in non-US regions that’s included in the overall price of Disney Plus.
What is unclear is whether Disney Plus Star will be rebranded to Hulu in non-US territories once Disney Plus and Hulu are combined into a single service. On the one hand, it would (ahem)streamline Disney’s streaming division globally. On the other, it might confuse viewers (initially, at least) about Hulu replacing Star on Disney Plus outside of the US.
We’ve reached out to Disney for clarification on how the Disney Plus-Hulu merger will impact Disney Plus in non-US regions, and we’ll report back if we receive a response.
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News of Disney Plus and Hulu’s combining comes amid another somewhat turbulent period for The Walt Disney Company. Per the entertainment conglomerate’sQ2 2023 earnings report,Disney Plus lose a staggering four million subscribers between December 31, 2022 and April 1, 2023, with those losses largely attributed to a huge drop-off in Indian subscribers using its Disney Plus Hotstar service. This latest downturn comes afterDisney Plus lost its magic touch among audiences and posted a 2.4 million dropin users in Q1 2023.
It isn’t all bad news for Disney, though, with direct-to-consumer (DTC) revenues rising 12% to $5.5 billion. Disney celebrated this profits-based rise by confirming it plans to increase the price of its ad-supported subscription tier in the near future, as well as rolling it out into Europe, sometime soon. So, you know, at least it’s still making money despite losing subscribers…
Meanwhile, Hulu and ESPN Plus saw slight upticks in their subscriber bases – Hulu increasing its number of users by 200,000, and ESPN Plus adding 400,000 to its fanbase.Disney’s Q2 2023 earnings presentationalso confirmedThe Mandalorianseason 3is the most-watched Disney Plus series of 2023 so far. On the big screen,Guardians of the Galaxy 3opened with an impressive $289 million worldwide box office haul, too – proof thatMarvelmovies can still draw in sizable audiences.
A new kind of streaming war
The forthcoming merger of Disney Plus and Hulu marks a new era in the ongoing battle for streaming supremacy.
Disney’s announcement about its own super streamer comes less than a month after Warner Bros Discovery (WBD) revealed Max, its mega streaming service that’ll combineHBO Maxand Discovery Plus into a single entity. You can find out more about how Max, which is due to launch on May 23, will shift the streaming landscape in our7 things you need to know about Max explainerarticle.
Evidently, WBD and Disney’s plans to make super streaming platforms is each company’s way of trying to usurp Netflix. As the pie chart above shows (per Parrot Analytics), Netflix is far and away the most popular andbest streaming servicearound, with the company’s platform holding almost 38% of global audience demand for streaming originals.
In contrast, Disney Plus (9.4%), Hulu (5.1%), and HBO Max (4.5%) lag way behind their rival. EvenPrime Video, which arguably isn’t as popular as this trio among consumers when it comes to what which streamer you think of first, holds a bigger slice of the pie with a 10.4% share. The combining of Disney Plus and Hulu, then, would take Disney’s overall share to 14.5% – still someway off Netflix, sure, but a slight closing of the gap nonetheless.
Disney Plus and Hulu’s merging would stand Disney in even better stead when it comes to theirfullmovie and TV show offerings, which includes their originals films and TV series, plus any third-party licensed content that they carry.
As the Parrot Analytics bar chart shows above, combining the two services would give Disney an unassailable total demand share of 25.2% across the whole streaming market. Max (HBO Max and Discovery Plus combined) would come in second with 18.7%, with Netflix shunted into third place with 17.9%.
Clearly, then, uniting Disney Plus and Hulu into a single entity, even if it is only in the US, is a plan worth pursuing for The Walt Disney Company. If it means it finally has a chance of overthrowing Netflix, it’s an opportunity worth taking. All Disney needs to do now is convince its userbase and potential new subscribers that a combined Disney Plus-Hulu platform is worth investing in. But, with the company slowing down its output of original films and shows (per theBoardwalk Times), it’s unclear if it’ll be able to persuade new users to sign up with less content to stream.
For more streaming-based coverage, find outwhich movies and TV shows have been heavily impacted by the writers' strike. Additionally, read about thebest Disney Plus shows,best Hulu movies, andbest Netflix showsaround.
As TechRadar’s senior entertainment reporter, Tom covers all of the latest movies, TV shows, and streaming service news that you need to know about. You’ll regularly find him writing about the Marvel Cinematic Universe, Star Wars, Netflix, Prime Video, Disney Plus, and many other topics of interest.
An NCTJ-accredited journalist, Tom also writes reviews, analytical articles, opinion pieces, and interview-led features on the biggest franchises, actors, directors and other industry leaders. You may see his quotes pop up in the odd official Marvel Studios video, too, such as thisMoon Knight TV spot.
Away from work, Tom can be found checking out the latest video games, immersing himself in his favorite sporting pastime of football, reading the many unread books on his shelf, staying fit at the gym, and petting every dog he comes across.
Got a scoop, interesting story, or an intriguing angle on the latest news in entertainment? Feel free to drop him a line.
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