Reasons Disney Might Retain Hulu Amid Full Integration Plans

Disney has announced plans to fully integrate Hulu into the Disney+ app by 2026, merging their catalogs and recommendations into a cohesive, streamlined platform. Despite this integration, standalone Hulu subscriptions will remain available, raising questions about the longevity of the Hulu brand.

Some conjecture Disney's aim may render Hulu redundant, though others suggest the app's fate is not yet sealed. During a recent earnings call, CEO Bob Iger highlighted how a combined service provides an enhanced consumer experience, potentially reducing churn and enhancing subscriber retention.

Disney had taken steps earlier to blend the platforms, such as integrating Hulu search functions within the Disney+ app. This effort has been aimed at boosting engagement, driven by a more unified consumer journey, and has involved significant behind-the-scenes tech restructuring.

Hulu offers considerable value, evidenced by its 55.5 million subscriber base. The integration raises the possibility of absorbing these subscribers into a revamped Disney+ powerhouse without compromising their original library. Furthermore, Hulu’s financial metrics reveal higher average monthly revenue per user compared to Disney+, supporting arguments for both continued operation as a standalone brand and its potential folding into Disney+.