Disney and Warner Bros. Discovery recently announced plans to launch a new video-on-demand service that combines the content from Disney+, Hulu, and Max into one app. The bundle will be available in the U.S. this summer, offering content from a wide range of networks and studios including ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Marvel, Pixar, Searchlight, and Warner Bros. in ad-supported or ad-free plans. Users will have the option to purchase the bundle from either company, with Warner Bros. CEO JB Perrette stating that it will be “the greatest collection of entertainment for the best value in streaming.”
The move to combine the three major streaming services into one app reflects a trend toward consolidation in the highly competitive video-on-demand market. This comes on the heels of ESPN, Fox Corp., and Warner Bros. Discovery teaming up to launch an app that will group together their sports content to U.S. users later this year. Other entertainment and media giants such as Comcast-owned NBCUniversal and Paramount Global have struggled to turn a profit on streaming due to the high costs of producing content, with Netflix leading the pack in terms of critical mass and profitability.
The Max streaming service, which launched last year, combines 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, which was originally a joint venture with 21st Century Fox, Time Warner, and NBCUniversal. Disney’s direct-to-consumer business has achieved profitability, with $47 million in profit for the quarter and an increase in subscriptions for Disney+ and Hulu. Disney CEO Bob Iger has focused on finding synergies in streaming to increase audiences and reduce costs, announcing a plan to cut 7,000 jobs across the company in early 2023 as part of a broader effort to stabilize the company financially.
The partnership between Disney and Warner Bros. Discovery in launching a new video-on-demand service reflects a strategic move to capitalize on the popularity of streaming platforms and offer a comprehensive range of content to consumers. By combining the content from multiple streaming services into one app, the companies are aiming to provide users with a diverse selection of entertainment options in a cost-effective and convenient manner. The success of this new bundle will be closely watched as the streaming industry continues to evolve and adapt to changing consumer preferences and technological advancements.
