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The Markets
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Media

Disney+ and Hulu join forces in battle for streaming crown

Disney+ and Hulu are planning to join their content together into a single app after both services reported a drop in subscribers.

The two digital streaming services, which are both owned by the The Walt Disney Company (NYSE:DIS), saw the number of paid subscribers fail to grow in the three months to 1 April.

Disney +, which offers franchises like the Marvel Cinematic Universe and Star Wars, dropped 2% to 157.8mln paid subscribers.

The fall was affected by increased subscription fees in the US and Canada as well as losing rights to cricket’s Indian Premier League (IPL).

Hulu’s subscriber count increased by 200,000 in the same period to reach 48.2mln, but was worsened by increasing programming and production costs that damaged revenues.

Users of the services have taken to social media to raise concerns about the proposed platform combining, worried that prices for the service would increase when the two joined.

However, the media conglomerate confirmed that Disney+, Hulu and its sports subscription service ESPN+ would still be available as standalone services.

These streaming services remain someway behind the 232.5mln active Netflix subscribers, according to the digital services' first-quarter report.

Even when combining the Disney+ and Hulu user counts it still falls around 30mln short at 206mln.

Although when including ESPN+ subscribers this number reaches 231.3mln, just over a million short of the streaming crown.

In other areas, Disney’s parks, experiences and products division saw sales jump 17% to US$7.8bln in the second quarter.

Executives will likely hope the fight with Florida Governor, Ron DeSantis, is in the rearview mirror.

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