Exciting news in the streaming world! Disney and Warner Bros. Discovery are joining forces to create a new video-on-demand service that will merge Disney+, Hulu, and Max into one convenient app.
This upcoming bundle is set to debut in the U.S. this summer, offering a wide range of content from ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, and Warner Bros. Users can choose between ad-supported or ad-free plans, making it flexible for different preferences.
JB Perrette, CEO of Warner Bros., expressed that this collaboration will provide "the greatest collection of entertainment for the best value in streaming." This move reflects a trend of consolidation in the competitive video-on-demand market, with other major players like ESPN, Fox Corp., and Warner Bros. Discovery also teaming up to offer combined content to users.
Stay tuned for more updates on the launch date and pricing of this exciting new streaming service!
Entertainment and media giants like Comcast-owned NBCUniversal, Warner Bros. Discovery, and Paramount Global (the parent company of CBS News) have faced challenges in making streaming profitable due to the high costs of content production. These companies are lagging behind Netflix, which achieved both critical mass and profitability before its streaming competitors.
The Max streaming service was launched last year, combining content from Warner Bros. and Discovery brands, including HBO, DC Comics films, and various reality series. Disney took full control of Hulu at the end of last year, originally a joint venture with 21st Century Fox, Time Warner (now owned by AT&T), and NBCUniversal (a Comcast subsidiary).
Following Disney's announcement of achieving profitability in its streaming channels, the company's direct-to-consumer business, comprising Disney+ and Hulu, reported a $47 million profit for the quarter, a significant improvement from the $587 million loss in the same period last year. By March, Disney+ subscriptions had increased by 6% to 117 million, while Hulu subscriptions rose by 1% to 50 million.
Disney CEO Bob Iger has been vocal about his goal to leverage synergies in streaming to expand audiences and reduce expenses. In early 2023, he revealed plans to cut 7,000 jobs across the company as part of a broader initiative to lower costs and strengthen the company's financial position.
