Key Takeaways
- Walt Disney Co. is on track to fully integrate its streaming platforms Hulu and Disney+ in 2026
- Hulu content will be folded into the Disney+ platform, but the stand-alone Hulu app will not be retired immediately
- The integration aims to create a unified app experience featuring branded and general entertainment, news, and sports
- Disney acquired the controlling stake of Hulu in 2019 and finalized its purchase of Comcast’s one-third stake in the service earlier this year
- The company plans to retain Hulu as the global brand for general entertainment, with popular shows such as "Only Murders in the Building" and "The Secret Lives of Mormon Wives"
Introduction to Disney’s Streaming Integration
The Walt Disney Co. is making progress on its plan to integrate its streaming platforms Hulu and Disney+ in 2026. The company announced last summer that it would be merging Hulu programming onto Disney+, and while executives have not provided a specific timeline for the launch of the integrated platform, they are working towards creating a unified app experience. This integration aims to combine branded and general entertainment, news, and sports, resulting in a one-of-a-kind entertainment destination for subscribers. Disney Chief Executive Bob Iger stated that the company is building on Disney’s value proposition in streaming by combining Hulu into Disney+.
Background on Hulu’s Ownership and Integration
Disney acquired the controlling stake of Hulu as part of its $72 billion purchase in 2019 of much of Rupert Murdoch’s Fox assets. However, the full integration of Hulu was paused until earlier this year, when Disney finalized its purchase of Comcast’s one-third stake in the service after a testy dispute between the two rivals. Prior to 2019, Hulu was owned by Comcast’s NBCUniversal, Disney, and Fox. With the acquisition of Comcast’s stake, Disney now has full control over Hulu and can proceed with its plans to integrate the platform into Disney+.
Technical Updates and Rollout
Earlier this month, Disney engineers refreshed the Disney+ homepage to allow users to seamlessly move among its various catalogs, including Disney+, Hulu, and ESPN. The company has also switched the Star tile for international Disney+ customers to the green Hulu logo, as part of its monthslong rollout. Additionally, Disney operates Hulu + Live TV, a pay-TV service with popular broadcast and cable channels, which will eventually be folded into the Disney+ app. Hulu subscribers will continue to be able to access the app well into next year, and after the launch of the combined platform, they will be able to watch Hulu-branded shows, with the goal of enticing users to upgrade to a Disney bundle.
Disney’s Goals and Expectations
The company’s goal is to create a unified app experience that will reduce the number of subscribers who drop their plans and instead, spend more time on the Disney+ app. Disney is designing the experience to encourage users to upgrade to a Disney bundle, which will provide access to a wider range of content, including Hulu-branded shows. With the integration of Hulu into Disney+, the company aims to boost its slate of original television and streaming shows, which has been a challenge in recent years. Disney’s TV programmers are under pressure to produce more original content, and the company is preparing reboots of nostalgic 20th Television-produced shows, including "Malcolm in the Middle" and "Scrubs".
Current Performance and Future Outlook
As the year draws to a close, Disney is celebrating a successful year at the box office, with two movies surpassing $1 billion in global ticket sales: "Zootopia 2" and "Lilo & Stitch". The James Cameron movie "Avatar: Fire and Ash" has also performed well, making over $750 million worldwide. However, the company’s streaming performance has been somewhat lagging, with only three entries in Nielsen’s Streaming Top 10 for the last week of November. The company is working to improve its streaming offerings, and the integration of Hulu into Disney+ is a key part of this strategy. With the combined platform, Disney aims to provide a more comprehensive and appealing streaming experience for its subscribers, and to increase its competitiveness in the crowded streaming market.
