Walt Disney Co. DIS is preparing to integrate Hulu into Disney+ as part of its broader push to streamline its streaming services, with CEO Bob Iger saying the move will improve consumer experience and profitability.
Disney Shifts Focus To Unified Streaming Experience
During Disney’s fiscal third-quarter 2025 earnings call on Wednesday, Iger confirmed that the company is advancing plans to merge Hulu and Disney+ into a single app. He explained that the strategy is rooted in delivering a better product for users while creating operational and financial efficiencies.
“You’re going to end up with a far better consumer experience when those apps are combined,” Iger said, adding that combining all of the programming assets of both apps improves the experience and lowers churn.
Iger also noted that the integration would place both platforms on a single tech stack and give Disney greater flexibility in advertising and pricing strategies.
“We already sell advertising together, but this will allow our sales team to package them far more effectively,” he added.
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Standalone Hulu App May Fade Out
Asked about Hulu’s future as an independent app, Iger didn’t directly answer, but indicated that bundling general entertainment with Disney’s family-friendly content in a single destination makes more sense—especially when paired with ESPN’s direct-to-consumer platform.
“It also provides us a tremendous bundling experience,” he said.
The comments came after Disney finalized a deal to acquire Comcast Corporation’s CMCSA remaining 33% stake in Hulu.
The final payout—$439 million above the original floor price—ended a long-running dispute and valued Hulu closer to Disney’s estimate.
Direct-To-Consumer Business Delivers Profits
Disney’s direct-to-consumer segment, which includes Disney+ and Hulu, posted $346 million in operating income on $6.2 billion in revenue, up 6% year-over-year.
Total subscribers for Disney+ Core and Hulu reached 183 million, with 1.8 million new Disney+ Core subscribers added.
While Disney beat Wall Street’s third-quarter earnings expectations with adjusted EPS of $1.61, revenue slightly missed forecasts at $23.65 billion.
Disney also raised its full-year adjusted EPS forecast to $5.85, an 18% increase from fiscal 2024. CFO Hugh Johnston said there were no updates on DTC margin targets but noted that further guidance will be shared in the next quarter.
Price Action: Disney shares slipped 2.74% to close at $115.17 on Wednesday, before edging up 0.035% after hours, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings indicate that Disney is showing strong price momentum across short, medium and long-term periods. Additional performance metrics can be found here.
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