First Streaming Bundle Is Here: Disney Plus, Hulu, and Max To Launch Combined Offer
It’s been long thought that the streaming landscape is shifting towards inter-company bundles. Those who predicted this would happen sooner rather than later have just won their bets, as Warner Bros. Discovery and Disney announced today they will be launching a combined streaming offer that will include Disney Plus, Hulu, and Max.
No pricing has been announced as of yet, but the service could launch as soon as this summer and will feature both ad-free and ad-supported tiers. Both services have already been offered together in the past, but by third parties like internet providers. This will be the first time they, or any other platform, launches their own combined effort. It also comes a few months before a sports-only streaming service split between three companies — Disney, WBD, and Fox — launches.
Disney hosted its Q2 earnings call on Tuesday, where they boasted a first-time profit margin on Disney and Hulu. When adding in ESPN Plus, the streaming losses reach $18M, down significantly from a $659M loss a year ago. The company expects to reach streaming profitability in Q4 of the current fiscal year. WBD is presenting its Q1 earnings on Thursday. Both companies are very close to reaching those much-coveted profit margins that Wall Street likes so much, and combining their efforts might be the final push they need to do so.
It was always believed that the first two companies to give in to bundling would be Peacock and Paramount Plus. Research suggests they would increase their respective numbers significantly, and it made sense that the two smaller platforms would join forces. Apple TV Plus may also find room there. But now that someone broke the ice, it will be interesting to see who will follow, and when.
Joe Earley, head of direct-to-consumer for Disney Entertainment, said in a statement:
“On the heels of the very successful launch of Hulu on Disney+, this new bundle with Max will offer subscribers even more choice and value. This incredible new partnership puts subscribers first, giving them access to blockbuster films, originals, and three massive libraries featuring the very best brands and entertainment in streaming today.”
JB Perrette, CEO and president of global streaming and games for Warner Bros. Discovery, added:
“This new offering delivers for consumers the greatest collection of entertainment for the best value in streaming, and will help drive incremental subscribers and much stronger retention. Offering this unprecedented entertainment value for fans across all the complimentary genres these three services offer, presents a powerful new roadmap for the future of the industry.”
Miguel Fernández is a Spanish student that has movies as his second passion in life. His favorite movie of all time is The Lord of the Rings, but he is also a huge Star Wars fan. However, fantasy movies are not his only cup of tea, as authors like Scorsese, Fincher, Kubrick or Hitchcock have been an obsession for him since he started to understand the language of filmmaking. He is that guy who will watch a black and white movie, just because it is in black and white.
