In a rare moment of solidarity, two entertainment giants have teamed up to try to get consumers to stop canceling their streaming services so frequently.
Disney and Warner Bros. Discovery announced Wednesday that they would begin offering a bundle of their Disney+, Hulu and Max streaming services this summer, a sign of how the rivals are more willing to join forces to confront an ever-changing media landscape. .
The companies said the package would be available for purchase on any of the three streaming platforms' websites (Disney owns Disney+ and Hulu; Warner Bros. Discovery owns Max), and that there would be a commercial-free version and another with ads. . The companies did not announce prices or the date the offer would be available.
The monthly retail price for subscribing to commercial-free versions of all three services is currently $48; plans with ads are $25 combined. A bundled deal will likely cost less.
Media executives have been upset in recent years as the extremely profitable cable package has been undone by cord cutting and as viewers have quickly turned to on-demand streaming entertainment. The transition to streaming has been difficult for companies, which have been bleeding money.
Disney, for example, announced this week that Disney+ was profitable last quarter for the first time, even though its overall streaming division lost money.
Adding to the uncertainty, consumers have shown a much greater willingness to pick and choose streaming services over the past year, further confounding executives who have cut costs and reduced the number of TV shows to get closer to getting significant profits.
Disney has announced a bundle for Disney+, Hulu and ESPN+. The company has said it has seen good results with that offering.
Executives have been flirting with the idea of cobbling together a streaming deal between media companies to give consumers less incentive to cancel. The offering of Disney+, Hulu and Max is an important step in that direction.
Joe Earley, president of Disney Entertainment's direct-to-consumer division, said in a statement that “the new partnership puts subscribers first.” JB Perrette, CEO of Warner Bros. Discovery's global streaming unit, called it “a powerful new roadmap for the future of the industry.”
In February, Disney, Warner Bros. Discovery and Fox said they were forming a joint venture to create a streaming service dedicated to their sports offerings. It is expected to debut in the fall.
