A couple of huge changes have hit Disney+ recently, so if you haven’t been keeping up with all the news, these updates might take you by surprise!
The streaming service has been a hot topic with Disney executives and investors, so it makes sense that we’re seeing so many changes as Disney pushes to make it profitable by the end of next year. A lot is going on behind the scenes to get the service going in the right direction for profitability, and some of those updates are affecting subscribers’ experiences with the app.
Ever since Bob Iger returned as the Walt Disney Company CEO, he’s been focusing on Disney+ and the rest of the company’s TV assets. He’s even gone so far as to call this his “number one priority.”
In the first quarter earnings call of 2023, Iger said, “Streaming business is the future and has been growing.” He said that Disney must focus on core franchises and get “better at curating the Disney and the Pixar and the Marvel and the Star Wars of it all.”
In the same call, Iger introduced a few big ideas to keep Disney+ growing: (1) Seeking loyal subscribers for the long term, (2) Reviewing pricing and making sure services are priced correctly, and (3) Rebalancing marketing on the platform versus marketing of the programs.
We’ve seen a big update with the second point, as Disney+ and Hulu both saw price increases in 2023. Disney has also thrown out a few innovative ideas for advertising and marketing on the platform.
So what’s happening now? Right now, it’s crunch time for Disney+. Since its debut in 2019, the streaming service has never been profitable. That might sound a little extreme, but it’s actually close to what Disney expected when they first introduced Disney+. For a long time, Disney has pointed to 2024 as the year when the streaming service will finally hit profitability.
With the start of 2024 just a couple of weeks away, Disney is likely in the home stretch of their plan to boost Disney+ to profitability. A couple of recent changes may have been part of that plan!
Beta Launch of Hulu on Disney+
One of Disney’s strategies to boost Disney+ profitability is to combine Hulu and Disney+ into one app. The beta launch for this feature officially happened on December 6th in the United States and Canada.
If you’re in the U.S. or Canada, you should be able to see a Hulu button when you open up your Disney+ app (near the top, by the Disney, Pixar, Marvel, Star Wars, and National Geographic buttons). The idea is that this will make it easier for people to switch back and forth between these platforms to access their favorite shows on each one.
Note that not ALL Hulu titles are available through Disney+. Until the official launch of this feature in March 2024, bundle subscribers can only access a limited number of Hulu titles through Disney+. Disney wants to “better understand the consumer’s needs and wants when it comes to Hulu on Disney+ before it officially launches in the spring.”
Most importantly, Disney is giving parents time to set up controls and filters to make sure that everyone in the family only has access to content that’s age-appropriate. Hulu has more adult content than Disney+, so the two-step launch is meant to give parents time to set up appropriate controls.
Groupwatch Feature Removed
You might have forgotten about the Groupwatch feature that was part of Disney+ for a long time before it was removed just a couple of months ago.
This feature allowed subscribers to sync to each other’s devices and watch shows and movies at the same time. It was a way to watch content “together” without actually being physically together.
Groupwatch was removed from Disney+ in September 2023, and there’s been no word on whether it will come back.
We’ll likely see even more changes to Disney+ and the rest of Disney’s streaming and TV platforms throughout 2024. Stay tuned to DFB, and we’ll be sure to let you know about all the updates!
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