It’s finally happening. After months of rumors and an actual announcement, a joint app featuring content from Disney+ and Hulu will launch in beta state in December 2023, ahead of an official launch in the spring.
And, well, that’s really all we have at the moment. Disney CEO Bob Iger released the news on the company’s fiscal fourth-quarter earnings call on November 8. (The company ends its financial year on September 30.)
“We’re on track to introduce a more integrated one-app experience domestically,” Iger said on the call, adding that broader general-entertainment content is being made available to subscribers through Disney Plus … We’ll be rolling out a new one in December. Will launch a beta version for bundled customers in. Before the official launch in spring 2024, giving parents time to set up profiles and parental controls that work best for their families.
“We feel really good about it,” Iger said of the combined app during the question-and-answer session of the call. “Actually, I basically watched some demos of it yesterday. “We’ll launch it basically in full form at the end of March.”
Iger didn’t immediately provide any details on how the beta rollout would work, noting that different platforms have different methods of beta testing. (Or, for that matter, we don’t know if the combination will be some kind of opt-in feature for Disney Bundle subscribers, or if it will require a new app. That last part is unlikely.) Between the beta and The timing of the full launch gives Disney time to finally close the acquisition of the rest of Hulu after purchasing Comcast’s stake in the streaming service.
On its own, Disney+ ended the fiscal year with 46.5 million subscribers in the US and Canada. Hulu’s on-demand total closed at 43.9 million subscribers. However, it is not known how much of this overlaps through the Disney bundle. But look for an even bigger boost toward the bundle, which will let subscribers get that combined Disney+/Hulu app.
Also, expect to see continued pressure towards ad-supported levels. Netflix, which also has similar plans, has clearly stated that it makes more money on tiers with ads than those without ads. Iger said nearly 2 million customers joined the ad-supported tier in the fourth quarter, and more than 50% of new customers chose the ad-supported tier.
And over the past six months, customers who are in the ads tier spent 34% more time viewing the service.
