CareCredit - Women's Health April 2024

Hulu, Disney+ Bundle Gives Streaming Subscriptions Monetization Boost

Disney and Hulu apps

Streaming subscription commerce has become a cornerstone of modern entertainment, offering users access to a vast array of content with a simple tap on their screens.

However, in the face of rising competition, platforms are now embracing integrated experiences to not only retain existing subscribers but also entice new ones while unlocking fresh revenue streams.

The recent launch of Hulu on Disney+ for Disney bundle subscribers in the U.S. exemplifies this trend. By combining the extensive libraries of Disney+ and Hulu, the Bundle subscription, starting at an additional $2 per month, grants users access to a diverse range of content, from family-friendly Disney classics to the latest binge-worthy shows and movies.

This seamless access to Hulu content within the Disney+ interface not only enriches the value proposition for existing subscribers but also presents a compelling incentive for prospective customers to join the ecosystem.

“For standalone Disney+ subscribers, Hulu content merchandised across Disney+ will now come with expanded upsell options across additional devices, making it more convenient to upgrade their subscription to the Bundle,” Disney noted in a March 27 press release.

Moreover, reports suggest that Disney+ is exploring new avenues such as gaming and shopping options to drive revenue growth, following the lead of Amazon, which already leverages its Prime Video X-Ray feature for product and service recommendations.

Netflix is also eyeing gaming as a potential revenue stream, exploring various strategies such as in-app purchases and ad-supported gaming to bolster its offerings. Co-CEO Greg Peters underlined the importance of building a loyal gaming audience to drive engagement and retention for its core business, as highlighted during an October earnings call.

“We believe that we can build games into a strong content category, leveraging our current core film and series by connecting members, especially members that are fans of specific I.P.s, with games that they will love,” Peters said at the time.

Similarly, Spotify’s recent foray into educational video content alongside its music, podcast, and audiobook streaming service reflects the shifting landscape of entertainment consumption.

That, and the reported collaboration between media giants like Fox, Walt Disney’s ESPN, and Warner Bros Discovery to launch a joint sports streaming platform further underscore the growing recognition that integrating new offerings is crucial for maintaining user engagement and boosting revenue in today’s competitive landscape.

In fact, with many subscribers inclined to cancel their subscriptions when financial pressures arise, the need to continually provide fresh value becomes paramount.

PYMNTS Intelligence research has revealed that streaming subscriptions are often the first expense to be trimmed during such times. Specifically, more than 50% of consumers stated that they would cancel streaming subscriptions if faced with the need to reduce their monthly expenses — a higher percentage than any other service.

The era of standalone entertainment platforms is giving way to integrated experiences that offer greater convenience, value and variety to consumers. Initiatives like the integration of Hulu on Disney+ highlight this shift, demonstrating how the consolidation of multiple services under a single subscription model has the potential to not only transform entertainment consumption but also create new revenue streams for streaming platforms.

Moreover, it’s a chance for streaming services to ensure that their subscriptions remain indispensable in consumers’ spending budgets even when finances are tight.