The Walt Disney Company has announced significant changes to its streaming strategy that will reshape the way it reports subscriber metrics and integrate its Hulu and Disney+ platforms. CEO Bob Iger and CFO Hugh Johnston communicated these plans in a recent earnings call, stating that starting in fiscal 2026 for Disney+ and Hulu and in fiscal 2025 for ESPN+, the company will no longer disclose quarterly subscriber numbers and average revenue per user (ARPU). Instead, the focus will shift towards profitability metrics for its Direct-to-Consumer entertainment division.
These adjustments come in response to an evolving media landscape and reflect Disney’s commitment to providing a clearer understanding of its strategic initiatives and business performance. The decision mirrors a recent trend set by Netflix, which has also dialed down its subscriber reporting. Disney plans to follow in Netflix’s footsteps by offering updates on key subscriber milestones rather than traditional metrics.
In a pivotal shift, Iger revealed plans to sunset the standalone Hulu app next year, integrating it fully with Disney+. This move aims to enhance the consumer experience by consolidating programming assets from both services into a single, improved app. The new, unified platform is expected to launch in 2026, allowing for greater efficiency in sales and advertising, while also providing opportunities for better pricing strategies and bundling options.
With Hulu becoming Disney’s global general entertainment brand, it will replace the Star tile on Disney+ in international markets. The transition is designed to streamline content access and improve user engagement, with promises of exciting new features and a personalized homepage. Iger emphasized that these developments will ultimately provide subscribers with a richer, more convenient streaming offering while driving profitability and operational efficiencies for Disney’s streaming business.
The potential for lower churn rates and increased advertising revenue solidifies Disney’s commitment to enhancing its streaming services amid increasing competition. By focusing on these integrations and improvements, Disney aims to set itself apart in the crowded streaming market, providing hope for continued growth and success in the digital entertainment sphere.