Disney to shut down Hulu app
As per Variety, the streaming giant will merge Hulu into Disney+.
Disney chief Bob Iger touted a number of benefits through the move, including increased engagement and lower churn rates. But a major boon for Disney should come on operating expenses.
In fiscal 2025, Hulu will have programming costs of USD 4.1 billion and non-programming expenses of USD 2.9 billion -- increasing to USD 4.4 billion in content costs and USD 3.3 billion in non-content costs by fiscal 2027, according to projections by MoffettNathanson analyst Robert Fishman.
Disney has "an opportunity to drive additional cost efficiencies from the elimination of duplicative technology and administrative costs" at Hulu, he wrote in a July 14 note. According to Fishman, the benefits of combining Hulu with Disney+ are "likely still not fully captured in our current forecast."
Disney now owns 100 per cent of Hulu after Disney finally closed its deal with Comcast to buy out NBCUniversal's one-third stake in the streamer in June 2025.
On Disney's earnings call Wednesday with analysts, Iger didn't quantify expected cost synergies of the planned integration of Hulu into Disney+ although he said it would yield "operational efficiencies," as per Variety.
"We obviously will deliver efficiencies. When these are together, they'll be on one tech stack, as a for instance, one tech platform," Iger said. He also noted that Disney has a unified sales approach for advertising across Hulu and Disney+, "but this will give our sales organization a chance to package them far more effectively than they have before."
That said, the CEO largely focused on what he promised will be a "far better consumer experience." "We are building on Disney's value proposition in streaming by combining Hulu into Disney+ to create a unified app experience featuring branded and general entertainment news and sports, resulting in a one-of-a-kind entertainment destination for subscribers." In addition, in the fall of 2025, Hulu will replace the Star tile on Disney+ internationally as the brand for adult-oriented programming.
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