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Disney stated Wednesday it could add Hulu content material to its Disney+ streaming app, whereas additionally asserting it could elevate the value of its ad-free streaming service later this yr.
CEO Bob Iger stated the corporate would quickly start providing a “one app expertise” within the U.S. that includes Hulu content material into its flagship streaming service, Disney+. Standalone choices for all of Disney’s platforms, together with ESPN+, will stay.
“It is a logical development of our DTC choices that may present larger alternatives for advertisers, whereas giving bundle subscribers entry to extra strong and streamlined content material leading to larger viewers engagement and finally resulting in a extra unified streaming expertise,” Iger stated throughout Wednesday’s earnings name.
Iger attributed the transfer towards a one-app location for each Disney+ and Hulu content material to the “promoting potential for the mixed platform.” Whereas Hulu has lengthy provided an ad-supported choice for subscribers, Disney+ launched the cheaper tier final yr.
Disney will start to roll out the one-app providing by the tip of the calendar yr, and Iger stated the corporate would share additional particulars at a later time.
The transfer comes as Disney has been weighing whether or not it should purchase all of Hulu. Disney owns 66% of Hulu for the time being, whereas Comcast owns the remainder.
The businesses reached a deal in 2019 wherein Comcast can power Disney to purchase (or Disney can require Comcast to promote) that remaining stake in January 2024 at a assured minimal complete fairness worth of $27.5 billion, or about $9.2 billion for the stake.
Disney additionally introduced its fiscal second quarter earnings on Wednesday. The corporate reported $21.82 billion in income, up 13% from the identical interval final yr and beating estimates.
It stated its streaming losses had narrowed yr over yr, even because it misplaced subscribers throughout the newest interval.
Disclosure: Comcast owns NBCUniversal, the father or mother firm of CNBC.