William Simpson
Disney and Warner Bros. Discovery, the parents of Disney+, Hulu and Max, said this week that it will soon offer a new video-on-demand service that combines the three streaming platforms into a single app.
The package will be available in the US this summer, companies he said in a joint statement on Wednesday. They did not share a specific launch date or price for the service.
Users of the new package will have access to content from ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight and Warner Bros. . Customers will be able to purchase the package from either company. In a statement, JB Perrette, CEO of Warner Bros., said the new platform will be “the largest collection of entertainment at the best value in streaming.”
The coming together of three major streaming services to combine all their content into a single app signals a trend towards consolidation in the highly competitive video-on-demand market. ESPN, Fox Corp. and Warner Bros. Discovery announced earlier this year the launch of an app this fall that will bring together most of its respective sports content for US users.
Entertainment and media giants like Comcast-owned NBCUniversal, Warner Bros. Discovery and Paramount Global (parent company of CBS News) have struggled to make a profit from streaming, given the high costs of producing content. These companies are behind Netflix, which reached critical mass and profitability before its streaming rivals.
The Max streaming service launched last year as a combined app featuring content from the Warner Bros. brands. and Discovery, including HBO, DC Comics films and various reality shows. Late last year, Disney took full control of Hulu, which was initially a joint venture with 21st Century Fox, Time Warner (now controlled by AT&T) and NBCUniversal (owned by Comcast).
News of the package came just days after Disney announced it had achieved profitability on its streaming channels. Disney’s direct-to-consumer business, which includes Disney+ and Hulu, reported a profit of $47 million in the quarter, a sharp turnaround from a loss of $587 million in the same period a year ago. In March, Disney+ subscriptions increased 6% to 117 million, while Hulu subscriptions grew 1% to 50 million.
Disney CEO Bob Iger has made no secret of his desire to find synergies in streaming to grow audiences and cut costs. In early 2023, he announced that 7,000 jobs would be cut across the company as part of a broader plan to reduce costs and financially stabilize the company.
—AFP – Agence France Press contributed to this report.
