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4 months ago
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Disney and Warner Bros. Discovery are breaking ground in streaming with a bundled offering featuring Disney+, Hulu and Max in a single package.
The companies are aiming to launch the bundle this summer. The exact launch date and the price point have not yet been announced, but plans call for both ad-free and ad-supported versions to be available.
The move is the first cross-company partnership for any of the top-tier services to come to market as the race to catch up with Netflix began in earnest about five years ago. It follows years of speculation and public musings by top executives about when cross-company bundling might begin to make streaming more cost-efficient for programmers and consumers alike. Churn, the industry term for how many subscribers cancel, has been a nagging problem for media companies long accustomed to the far more stable patterns of pay-TV, which was built on a foundation of long-term contracts and physical equipment. In the realm of direct-to-consumer internet businesses, a tap of an app can vaporize revenue, one of the many reasons why companies have been looking more closely at bundling.
Viewers, for their part, complain of a dizzying landscape of apps and titles scrolling across their screens, making the simple act of finding something to watch a grueling process.
Within companies, bundling has been the coin of the realm for several years, with Disney in the vanguard with its bundle of Disney+, Hulu and ESPN+. Many players are taking the next step and more fully consolidating services. Max last year rebranded from HBO Max and added Discovery+ content. Disney has been steadily bringing its services together, adding a Hulu tile to Disney+ earlier this year and planning an ESPN one later this year.
Disney, despite rolling up all of Hulu in a buyout of Comcast’s stake in recent months, has shown interest in joint ventures in streaming, recently
Brands to be showcased in the new Disney-WBD bundle ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, Warner Bros., and many more.
The new bundle will be available for purchase on any of the three streaming platforms’ websites.
“On the heels of the very successful launch of Hulu on Disney+, this new bundle with Max will offer subscribers even more choice and value,” said Joe Earley, President, Direct to Consumer, Disney Entertainment. “This incredible new partnership puts subscribers first, giving them access to blockbuster films, originals, and three massive libraries featuring the very best brands and entertainment in streaming today.”
“This new offering delivers for consumers the greatest collection of entertainment for the best value in streaming, and will help drive incremental subscribers and much stronger retention,” said JB Perrette, CEO and President, Global Streaming and Games, Warner Bros. Discovery. “Offering this unprecedented entertainment value for fans across all the complimentary genres these three services offer, presents a powerful new roadmap for the future of the industry.”
