Walt Disney Co (NYSE:DIS, ETR:WDP) and Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) have laid down plans to launch a bundled streaming service in the US this summer.
Disney's Disney+ and Hulu will be clubbed together with Warner's Max and offered to US customers on all three streaming packages under the move.
“This new offering [...] will help drive incremental subscribers and much stronger retention,” Warner Bros executive JB Perrette said in a statement.
The move comes as each has faced competition from the likes of Netflix (NASDAQ:NFLX, ETR:NFC) and Amazon's (NASDAQ:AMZN) Prime streaming service.
All streaming services are scrambling for subscribers through new offerings against a backdrop of a move away from traditional television by audiences.
Packages will be offered with and without adverts, though no details on pricing have been released yet.
Disney earlier this week announced a six million increase in subscribers over the first three months of the year, taking its total to 117 million worldwide, excluding India. Discovery reported roughly 98 million subscribers to its direct-to-consumer video streaming services Max, HBO, HBO Max, and Discovery+.
Each company will likely look to complement each other's offerings through the new merged service, with Disney+ generally running shows for younger viewers as Warner Bro caters to older generations.
Disney shares were flat in pre-market trading, while Warner Bros climbed almost 3%.