Disney confirmed it will fully integrate Hulu into Disney+ by 2026, replacing the Star brand in international markets with the Hulu brand.
Disney no longer sees a divide between streaming and traditional TV, as CEO Bob Iger declared the company firmly in the “television business” during its Q3 earnings call today (6 August).
“We’re at a point, given the way we’re operating our businesses, where we don’t really look at being in the linear business and the streaming business,” Iger said.
“We’re in the television business and what we’re doing is we’re giving our customers or our viewers a chance to watch our programming, wherever they want.”
Disney no longer sees a divide between streaming and traditional TV, as CEO Bob Iger declared the company firmly in the “television business” during its Q3 earnings call today (6 August).
“We’re at a point, given the way we’re operating our businesses, where we don’t really look at being in the linear business and the streaming business,” Iger said.
“We’re in the television business and what we’re doing is we’re giving our customers or our viewers a chance to watch our programming, wherever they want.”
The shift reflects a broader goal within Disney towards meeting audiences “where they are”, underpinned by platform integration, tech upgrades and international growth.
As part of this push, Disney confirmed it will fully integrate streaming service Hulu into Disney+ by 2026, replacing the Star brand in international markets with the Hulu brand. This marks Hulu’s first global expansion and follows Disney’s $438.7m (£364m) payment of Comcast’s remaining stake in the service last month.
“We are building on Disney’s value proposition in streaming by combining Hulu into Disney+ to create a unified app experience featuring branded and general entertainment, news and sports, resulting in a one-of-a-kind entertainment destination for subscribers,” Iger said.
The app is designed to enhance the user experience, reduce subscriber churn and is being positioned as a “major step forward” in improving Disney’s streaming options.
“By creating a differentiated streaming offering, we will be providing subscribers tremendous choice, convenience, quality and enhancing personalisation,” he added.
The announcement of the Hulu integration follows a deal struck by Disney and ITV in July to stream hit shows such as The Bear and Love Island on each other’s platforms, signalling a shift in how British broadcasters and US streamers collaborate.
Disney will launch an ESPN direct-to-consumer streaming service on 21 August, offering access to the full suite of ESPN networks and content for the first time.
Disney has also made “technological improvements” designed to boost engagement, including enhancements to its recommendation engine, homepage experience and the addition of always-on content streams such as ABC News and The Simpsons.
“We’re experimenting like crazy,” Iger said. “We’re basically trying different elements out on consumers and getting data back from them in order to figure out what works the best.”
The strategy is backed by a “growth-oriented” approach, rather than one focused on cost-cutting, Disney claims. As engagement increases and churn drops in the US, CFO Hugh Johnston said there would be opportunities to reinvest marketing spend into international content, describing it as a “rifle shot approach” to grow both subscribers and ad revenue.
Meanwhile, Disney confirmed it will stop reporting individual subscriber numbers for its streaming services in quarterly earnings, calling the numbers “less meaningful” to evaluating its business and following Netflix’s lead.
The company added 2.6 million subscribers across Disney+ and Hulu this quarter, bringing its total to 183 million. For the three months ending June 28, Disney’s revenues increased 2% to $23.7bn (£17.74bn).
