Disney is reportedly considering combining Disney+ and Hulu into a single streaming service. The Mouse House jumped into the streaming wars in a big way last year with the launch of Disney+ and finalizing a deal to acquire 21st Century Fox's film and TV assets. After years of Netflix growing and dominating the streaming market, Disney used The Mandalorian and an IP-driven content library to launch Disney+ in November 2019. Meanwhile, they also became the majority owner of Hulu with the Fox acquisition.
Over the last year, both Disney+ and Hulu have experienced great growth. Disney+ has blown past expectations for its subscriber numbers, reaching over 70 million subscribers worldwide in a year. Hulu has gone from having just north of 20 million subscribers when Disney gained its majority stake to now having over 35 million almost two years later. However, the two services are quite different at the moment. Disney+ focuses on family-friendly content while Hulu has become the home for more mature content, including some originals once planned for Disney+.
Instead of continuing down the path of having two major streaming services, Disney is reportedly considering a massive move that will combine Disney+ and Hulu. Collider reports that they've heard executive changes are already being made to make this possible. The outlet notes that some executives at Hulu have already left in anticipation of the move, while others have formally been let go.
The possibility of Disney+ and Hulu becoming one comes at a point in time when streaming is becoming an even bigger focus for major entertainment studios. Warner Bros. recently announced that Wonder Woman 1984 and their entire 2021 slate will go to HBO Max and theaters simultaneously. But, it also gives Disney+ a chance to diversify the content it offers. The family-friendly service has been critiqued for not having anything geared toward adults, but the addition of Hulu's library instantly fixes that. It is possible that an official announcement of these plans will come during Disney's investor day next week, which will be focused on the company's direct-to-consumer products.
If Disney goes through with combining Disney+ and Hulu, it will be fascinating to see how they do it. There have been rumors of a section being added that could contain adult content. This could theoretically include the option for parents to set up blocks so kids can not access such titles. Of course, the bundling of Disney+ and Hulu will likely come with a price increase for the single service, as Disney+ is $6.99 a month and Hulu's base package is $5.99. But, with HBO Max priced at $14.99 and Netflix raising prices to $13.99, the new-look Disney+ could still be cheaper and suddenly have a richer/more diverse library of content to offer subscribers. Only time will tell if Disney+ and Hulu become one, but it does seem unlikely that Disney will keep two competing streaming services around for too long.
Source: Collider