Streaming services are perpetually unprofitable. So, Disney and Warner Bros. Discovery are taking a page from cable television. Instead of pitting Disney+, Hulu, and Max against each other, they will offer all three of these services in an affordable bundle.
The Disney+, Hulu, and Max bundle comes in both ad-supported and ad-free varieties. If you’re willing to deal with ads, you’ll pay just $17 a month for these services ($10 in monthly savings). Opting for an ad-free experience pushes the price to $30 a month ($20 in monthly savings).
Both membership tiers provide full access to the Disney+, Hulu, and Max streaming libraries. This includes Max’s live MLB and NBA coverage. That said, the new bundle doesn’t include Hulu with Live TV or Max Ultimate.
This is one of the most significant corporate partnerships of the streaming era. Competitors rarely bundle their streaming services together, and such bundles are usually distributed through cellular providers or ISPs. Disney’s decision to place its streaming services alongside Max should be seen as an admission of failure—standalone streaming ventures are historically unprofitable, so consolidation is the only way forward.
Streaming bundles, like cable bundles, provide stability and mutual benefit for participating media corporations. Consumers are approximately 16% less likely to cancel a bundled subscription. And if one service that’s included in a bundle (let’s say Max) has a hit show, all the services that are bundled with it (Disney+ and Hulu) will gain new subscribers.
Of course, there are still some major differences between streaming bundles and cable bundles. You won’t face a massive cancelation fee when leaving a streaming bundle, for example. And while cable companies are often criticized for bundling popular channels with dozens of useless filler channels (which artificially inflate the price of your cable plan), streaming bundles are comparatively lean.
Note that Disney and WBD are also working to develop a joint sports streaming platform with FOX. This streaming venture has already elicited an antitrust suit from Fubo, which alleges that legacy corporations have intentionally stifled competition in the sports media market.
The new Disney+, Hulu, and Max bundle is available in the U.S. with prices starting at $17 a month. Customers who want an ad-free experience will pay $30 a month.
Source: The Walt Disney Company
