By Michaela Gordoni
Hulu as you know it will soon disappear and move to Disney+.
The Walt Disney Co. announced the app integration on Aug. 6. Disney CEO Bob Iger said there will be a “unified app experience.”
“This will create an impressive package of entertainment, pairing the highest caliber brands and franchises, great general entertainment kids, programming news and industry leading live sports content all in a single app,” Iger said.
It will offer a “better consumer experience” and give Disney “greater advertising revenue potential” by streamlining advertising.
Disney completed its acquisition of Hulu in June. The Hulu app will shut down some time next year, TV Insider reported.
“By creating a truly differentiated streaming offering, we will be providing subscribers tremendous choice, convenience, quality, and enhanced personalization,” Iger said. “This will enhance our ability to continue to grow profitability and margins in our entertainment streaming business through expected higher engagement, lower churn, and advertising revenue potential, as well as operational efficiencies that over time may result in savings that we can reinvest back into the business.”
Subscribers will still be able to use Hulu as a standalone service when its absorbed into Disney+.
The price breakdowns have not been updated or revealed yet. Right now, Hulu ad-supported costs $9.99 a month or $99 a year. Ad-free costs $18.99 per month. The Disney+ Hulu basic bundle with ads costs $10.99 a month, and the no-ads bundle costs $19.99 a month.
Related: Disney Announces Plans To Roll Out Hulu, Disney+ App
The Hulu + Live TV service will combine with Fubo. Hulu + Live TV and Fubo will still be marketed separately until next year, when Hulu Live TV combines into Disney+.
Variety reported that Hulu will be a global entertainment brand, and this fall, it will replace the “Star tile” on Disney+ internationally.
Research firm MoffettNathanson’s Robert Fishman wrote the Hulu integration could save Disney about $3 billion through “the elimination of duplicative technology and administrative costs.”
Paolo Pescatore, media analyst at PP Foresight, said the app merge will help reduce user frustration.
“Overall, it represents better value and allows Disney to understand customers’ habits and drive additional value,” Pescatore said.
Disney will launch its stand-alone ESPN app on Aug. 21. It also just got a five-year WWE deal to air its biggest events starting next year.
Disney also reported Wednesday that like Netflix, it will stop reporting quarterly subscriber numbers and revenue per user stats for all of its streaming services. However, it will continue to offer probability information about its entertainment direct-to-consumer segment.
While there’s lots of changes ahead for Disney, it continues to be an innovator in the entertainment space.
Read Next: Disney Pushes Charter Subscribers to Sign Up for Hulu with Live TV
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