Disney announced the combined Disney+ and Hulu streaming app will begin its beta testing for bundle subscribers in December.
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Disney to Launch New Bundled App
During its fourth quarter earning results, Disney confirmed its plans to release a combined app for both of its streaming devices. While the beta will start early for bundle subscribers in December, the app will not be available until early spring 2024. CEO Bob Iger expressed his expectations to increase engagement and have greater advertising opportunities for the new app. He also aspires to reduce the customer acquisition costs for next year.
The "one-app experience" is not an entirely new venture for the company as some countries outside the US already have that. Disney's boost in revenue is owed to the increasing global subscribers of its streaming platform. Last October, the company shrunk its losses to $387 million. While the company has confirmed its effort to crack down on password sharing, Iger announced that its "meaningful impact" will only be felt by 2025.
"As I reflect on our achievement this past year, I'm mindful of the fact that a lot of time and effort was spent on fixing... certain decisions made in the recent past and addressing the numerous challenges brought on by disruption and the pandemic," the CEO pondered.
Disney Bundled App Comes After Plans to Acquire Hulu
Previously, Disney confirmed that it has been negotiating to buy the remaining one-third stake in Hulu from Comcast's NBC Universal. The acquisition will further advance the company's streaming objectives and will make the one-app experience more seamless for the customers. Reports showed that Disney will buy the remaining 33 percent for over $8 billion.
Based on Walt Disney's company report for FY 2023, Disney+ gained revenue from notable shows such as "Ashoka," "Moving," "Elemental," and "Guardians of the Galaxy Vol.3." Meanwhile, the company will continue expecting its combined streaming business will increase profitability once it reaches the fourth quarter of FY 2024.
"While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our business again," Iger added. The company also firmly believes that Disney has a strong advantage that differentiates them from other companies in the entertainment company.
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