It’s no secret that battles among the major streaming players have been heating up. But a big acquisition by Disney underscores how the incumbents are trying to take the next steps to win the war. Earlier this month, Disney began rolling out a Hulu integration through its Disney+ streaming platform in a broader push to retain and attract more subscribers. The acquisition of CNBC-parent Comcast ‘s remaining one-third stake in Hulu for $8.6 billion is part of Disney’s larger plan to pull its streaming business out of the red and increase scale. During its quarterly earnings call in November, Club name Disney managed to raise its cost-cutting projections by more than 35% to around $7.5 billion in hopes of boosting profitability. But, Disney isn’t the only streamer looking to bundle. Last week, Verizon announced a bundle of ad-supported services from Netflix and Max, owned by Warner Bros Discovery , for $10 per month. Verizon customers can also get the current Disney bundle, — which includes Disney+ (no ads), Hulu (with ads) and ESPN+ (with ads)— as well as the new Netflix-Max offer for one price of $20 per month. Club holding Apple and entertainment giant Paramount Global were also said to be in early-stage talks to bundle their streaming services together at a discount, according to a Wall Street Journal on Dec. 1. Who knows what that would look like and whether they’d go seek out an intermediary like Verizon. Neither Apple nor Paramount immediately responded to CNBC’s request for comment. Hulu opportunity For years, Disney sold Hulu as a part of a streaming bundle with its Disney+ and ESPN+ products. But by rolling out a Hulu integration, the company is going one step further. Management is creating a unified one-app experience for users, combining Hulu’s high-quality general entertainment with Disney’s family-friendly franchises like Frozen and Marvel that other rivals may find hard to match. The Hulu purchase also aims to address a broader headwind facing…
Read the full article here