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disney The company said on Wednesday it would add Hulu content to its Disney+ streaming app, while also announcing it would increase the price of its ad-free streaming service later this year.
Chief Executive Bob Iger said the company will soon begin offering a “single app experience” in the US, integrating Hulu content into its flagship streaming service, Disney+. Standalone options across all of Disney’s platforms, including ESPN+, will remain.
“This is a logical evolution of our DTC offering that will open up more opportunities for advertisers while giving bundled subscribers access to more robust and streamlined content, leading to increased viewer engagement and ultimately a more unified streaming experience, ’ Iger said in Wednesday’s earnings report.
Iger attributes the move to a single app location for Disney+ and Hulu content to the “advertising potential of the combined platforms.” While Hulu has long offered subscribers an ad-supported option, Disney+ launched a cheaper package last year.
Disney will start rolling out single-app products toward the end of the calendar year, and Iger said the company will share more details at a later date.
The move comes as Disney has been weighing whether it should acquire the entirety of Hulu.Disney currently owns 66% of Hulu, while Comcast own the rest.
The two companies reached an agreement in 2019 that Comcast could force Disney to buy (or Disney could ask Comcast to sell) the remaining stake in January 2024, guaranteeing a minimum total equity value of $27.5 billion, or an equity value of about $9.2 billion.
Disney also reported its fiscal second-quarter earnings on Wednesday. The company reported revenue of $21.82 billion, up 13% from a year earlier, beating expectations.
It said its streaming losses narrowed year over year, even after losing subscribers in the most recent period.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.