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3 big questions from the Disney+, Hulu bundle announcement

By Jerald Raymond Pierce

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Disney made a huge announcement for its upcoming streaming service, Disney+. But for me, it raised more questions than excitement.

Well, we all knew it was coming and now the official announcement is finally here. According to a report from Deadline, Disney will be rolling out a bundle for people who want both Disney+ and Hulu. One addition that comes as a bit of a surprise (to me, at least) is the addition of ESPN+, the sports network’s exclusive online content.

All together, this will cost you $12.99 a month and will include Hulu’s “basic on-demand tier,” according to Deadline. As the report points out, that’s the same price as Netflix’s middle tier (its most popular subscription).

While Disney+ will have a lot of appealing content when it drops on Nov. 12, including 300 films (eight from Star Wars, 18 Pixar, four Marvel and 70 Disney Animation) and 7,500 episodes of Disney TV series, there are still some big questions about what this move means to us at home.

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Why even bundle?

My question here stems from this “basic on-demand tier” statement. Does that mean the ad-based subscription level for Hulu? If so, I’d be interested in knowing what the price difference is to remove ads from the Hulu content.

As someone who currently subscribes to Hulu’s non-ads level for one dollar less than the bundle will be ($11.99), of course the bundle seems appealing. I’d get a bunch of Disney content for barely more than what I already pay.

Two things, though. First: this price range is bound to be introductory. Over the years, we’ve all seen Netflix and Hulu continue to raise prices bit by bit, Disney+ is certainly going to do something similar in the coming years.

Second: Hulu’s ad-free service is $6 more than its ad-based service. Guess how much Disney+ is scheduled to cost on its own. That’s right, $6.99.  If the bundle comes with ads and you still have to pay six extra dollars to watch Hulu without ads, then essentially you’re still paying the exact same price as if you got Disney+ and Hulu separately. It’s still $19.

I hear you saying, “well you also get ESPN+!” I’ll get there.

What happens to Hulu subscriptions?

First let me address the other thought you’re having: that I’m complaining about nothing. If it’s the same price, why not just buy them separately and go about my life. Or take the bundle and watch one thing every year on ESPN+. Why does it matter?

Disney is desperate for this to succeed. They’re putting a lot of time, money and effort into it. According to The Verge‘s report on the bundle, Disney CEO Bob Iger told investors that Disney+ is “the most important product the company has launched in my tenure.”

What do you think is going to happen if Disney+’s numbers aren’t quite up to where Disney wants them to be and people are still subscribing to Hulu separately and staying away from the bundle and/or Disney+?

One easy way to boost numbers would be to drive everyone who wants Hulu (or ESPN+ for that matter) straight to this nice, pre-made bundle tied in with Disney+. That could mean reducing or completely eliminating solo Hulu subscriptions in the near future.

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To go further down that rabbit hole: What, then is Disney actually selling with this bundle?

Look, I call myself a sports fan. I gave ESPN+ a try. It’s not that great. There’s a good chance there will be many people who get this bundle who have no interest in what ESPN+ is bringing to the table.

But isn’t the whole idea behind cutting cable and moving to streaming services to get away from having and paying for stations and networks you’re not interested in?

I’m sure Disney will market this as an attempt to provide something for the whole family. Even the sports fans get something out of it! The reality of it, though, is that they’re selling cable. This is exactly how cable works. (And how products like Sling work.)

One thing to keep an eye on as Disney moves forward is how many other networks and companies they start to bring under their “bundle” umbrella if they start to see success.

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A couple of weeks ago, we saw NBC make the decision to revive A.P. Bio, but only on their streaming service. Could Disney make similar moves with some of its ABC and FX shows (both Disney assets)?

It’s all speculation at this point, of course. All guess work and assumptions. But when a company as large as Disney decides to make waves, it’s always good ask a few questions.

What do you think of Disney’s decision to bundle Disney+ with Hulu and ESPN+? Let us know in the comments!

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