• by Karlene Lukovitz  @KLmarketdaily, November 9, 2023

Disney CEO Bob Iger revealed more specifics about the company’s strategies for Disney+ and Hulu, as well as ESPN, during Wednesday’s fiscal Q4 earnings call.

Iger, who announced in May that Disney was developing a merged Disney+ and Hulu app to debut some time in 2023, yesterday said the app will go into beta launch in December for U.S. subscribers to the Disney+/Hulu bundle, with a full rollout of the unified “Hulu on Disney+” app set for next spring.

“We remain on track to roll out a more unified one-app experience domestically, making extensive general entertainment content available to bundle subscribers via Disney Plus,” he said.

Iger did not say if eligibility for the merged app will be extended to those beyond bundle subscribers at some point in the future.

He did say that the beta launch will give parents time to set up profiles and parental controls to address the availability of Hulu’s more adult-oriented content through the app.

The app’s launch follows Disney’s confirmation last week that it plans to buy out Comcast’s remaining 33% stake in Hulu sometime next year for at least $8.61 billion.

Hulu has been occasionally offering Marvel and other high-demand Disney+ content for a limited time, and the addition of Hulu content to Disney+ is the latest example of entertainment companies integrating streaming platforms.

Warner Bros. Discovery’s Max now includes most of Discovery+’s content, as well as HBO’s library and current offerings. Paramount+ subscribers can opt to pay more for access to Showtime content.

Iger also announced that when ESPN launches a true standalone ESPN streaming service offering the brand’s full programming lineup, subscribers will continue to have access to ESPN through at least some pay-TV bundles. (The current ESPN+ app offers only some of the brand's content, due to contractual obligations to pay-TV partners.) 

Iger previously confirmed that the “a la carte” ESPN streamer is in the works, without specifying a timetable.

Disney — whose recent deal with Charter that includes access to ad-supported Disney+ and ESPN+ for Spectrum cable subscribers represented a breakthrough in addressing the contentious issues raised by media companies’ dual pay-TV and streaming revenue channels — hopes to pull off a “soft landing” of the standalone ESPN streaming service launch, Iger said yesterday.

He suggested that Disney will watch how ESPN consumption patterns pan out between the two options. “As we model ESPN into the future, we see that in some cases, it will continue to be sold as part of the bundle,” he said.

Iger also confirmed reports that Disney has been holding talks with potential partners for the ESPN D2C service, and that there has been “significant interest.”

Disney will continue to explore the options, which could include bringing in support for marketing, technology or content, and is confident it can overcome the “complexities” involved in forming such a partnership, he said.