Disney is preparing a shift in its streaming business, signaling a new chapter for both its content and advertising operations.
At the heart of the plan is the merger of Hulu into Disney+, both to streamline brand architecture and to ramp up ad-sales potential across one unified platform.
According to the company, Hulu will cease to exist as a standalone app by 2026, with its content folded into Disney+ in the U.S. Internationally, Hulu is being positioned as the general-entertainment brand inside Disney+ replacing the “Star” tile, and it started Oct. 8.
Disney had a recent earnings call that underscored how it sees the unified app, rather than multiple niche services but as critical in a crowded streaming market.
“By creating a differentiated streaming offering, we will be providing subscribers tremendous choice, convenience, quality, and enhanced personalization, while at the same time continuing to grow profitability and margins in our entertainment streaming business through expected higher engagement, lower churn, operational efficiencies, and greater advertising revenue potential,” CEO Bob Iger said.
On the advertising front, Disney is merging an ad-server system across its streaming brands. Internally termed “Mission Control,” this unified merger will allow Disney to present advertisers with a single sales proposition covering both Disney+ and Hulu content.
Rebranding and franchise strategy are also key pieces of the plan. With Hulu becoming the hub for adult-skewing and general entertainment globally, Disney is doubling down on the strength of its flagship franchises while using the unified app to surface a wider variety of content types under one brand umbrella—giving Disney greater flexibility to market the franchise, integrate live sports via its ESPN assets, and deliver content experiences within a single user interface.
Streaming landscape pressures, rising subscription prices and ad-supported tiers are all a part of the plan. Disney has raised prices on Disney+ with ads and Disney+ Premium and linked explicitly to the expanded combined content offering of Disney+ and Hulu. For subscribers, the transition means fewer apps; one unified login and what Disney hopes is less stress.
Disney’s streaming play is shifting from “many apps, many brands” to “one super-app, a unified brand and diversified monetization.” The objective is to achieve operational efficiencies, improve advertiser offerings, accelerate subscriber growth and strengthen Disney’s position in the battle for viewers’ time and ad dollars.