Walt Disney Co. (NYSE: DIS) and Warner Bros. Discovery (NASDAQ: WBD) are joining forces to introduce a new streaming bundle that will include Disney+, Hulu, and Max. The bundle is set to be available in the U.S. this summer.
What Happened: The new bundle will offer both ad-supported and ad-free options, but the pricing details are yet to be disclosed, reported The Verge on Thursday. The companies have promised to share more information about the bundle in the coming months.
The bundle will be available for purchase from the respective websites of Disney+, Hulu, and Max.
Disney's president of direct-to-consumer, Joe Earley, stated, "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."
Additionally, ESPN, which is also owned by Disney, will launch a live sports streaming service in the fall, in collaboration with Warner Bros. Discovery and Fox.
This move comes at a crucial time for the streaming industry, as companies are shifting their focus from subscriber numbers to revenue. Disney on Tuesday announced that Disney+ and Hulu have generated a profit of $47 million for the first time. Warner Bros. Discovery plans to report its earnings outcomes before the opening bell on May 9.
Why It Matters: The streaming industry is witnessing a shift in focus from subscriber numbers to revenue, as companies are now turning their attention to revenue instead of subscriber numbers when evaluating how well their services are doing, the report noted.
This move by Disney and Warner Bros. Discovery comes at a time when the industry is grappling with the issue of rising costs for streaming services. This has led to an increase in the popularity of bundle offers, with companies like Max and Netflix (NASDAQ: NFLX) also teaming up to offer a cheaper bundle through Verizon (NYSE: VZ).
Moreover, Disney's move to introduce a new streaming bundle comes on the heels of a global crackdown on password-sharing, a policy that Disney plans to implement in select markets starting next month. The global rollout is scheduled for September.
Disney and Comcast (NASDAQ: CMCSA) are also reportedly seeking a financial advisor to resolve a dispute over the valuation of Disney's 33% stake in the streaming platform Hulu.