Disney's Strategic Path: Weaving Hulu into Disney+
On a recent notable announcement, CEO Bob Iger highlighted Disney's strategy to "fully integrate" Hulu into the Disney+ platform by 2026. While subscribers may still have the option to acquire separate Hulu subscriptions, this merging is expected to blur the lines between the two services. The plan to combine their catalogs, user profiles, and recommendations suggests a future where Hulu as a standalone entity becomes less relevant.
Reports are divided on whether the Hulu app will soon be discontinued, but the broader consensus suggests its eventual phase-out. An inquiry to Disney about the discontinuation went unanswered, leaving industry analysts to speculate about Hulu’s future.
Robert Fishman, an analyst at MoffettNathanson, questioned Disney on the implications for Hulu’s standalone app during a recent earnings call. CEO Iger emphasized that merging the apps would enhance user experience by offering comprehensive access to both Disney+ and Hulu’s content, potentially lowering customer churn rates.
The move follows Disney's technological efforts to sync Hulu into Disney+, starting with the addition of a dedicated tile in March. This integration required significant backend remodeling, including adjustments to login systems, advertisement frameworks, and metadata management, paving the way for the current cohesive platform that subscribers will see realized by 2026.
Disney's recent acquisition of Comcast's remaining stake in Hulu allowed for more decisive moves toward integration. This adjustment, Iger noted, is crucial for the profitability and operational synergy of Disney's broader streaming ventures, which also cover ESPN+.
While a full-fledged Disney+ experience that includes Hulu’s library is on the horizon, keeping Hulu as a brand still holds value. As per Disney's Q3 2025 earnings, Hulu, with its 55.5 million subscribers, represents a substantial user base even though it is dwarfed by Disney+’s 127.8 million subscribers.
Dropping standalone Hulu could risk losing millions of subscribers. However, integrating Hulu’s offerings into Disney+ as a bundled service has been shown to reduce churn effectively. Also, Hulu tends to yield higher per-subscriber revenue than Disney+, a consideration in the ongoing dialogue about whether or not to fully absorb Hulu into Disney+.
Furthermore, Disney plans to introduce Hulu internationally as a representative of its "global general entertainment" brand. As this evolution unfolds, it becomes imperative to track Disney’s approach, as the streaming industry anticipates more mergers and consolidations in the upcoming years.
