In a move to expand their footprint in the streaming industry, Disney and Warner Bros. Discovery unveiled plans on Wednesday for a joint offering that would merge Disney+ and Disney’s Hulu with Warner Bros.’ Max, incorporating a diverse range of content from the latter studio and its premium service, HBO. Notably, this collaboration would unite the major comic-book rivals, Disney’s Marvel and Warner Bros.’ DC, in a cohesive venture. (Warner Bros. Discovery is the parent company of CNN.)
The bundle will be accessible with and without advertisements. The companies stated that this partnership would offer consumers "the greatest collection of entertainment for the best value in streaming." Additional details, including pricing, will be announced soon.
Despite being among the leaders in attracting streaming subscribers, Disney and Warner Bros. have struggled with profitability as they compete with Netflix and others, investing heavily in programming to acquire and retain viewers.
Raising prices is the simplest way to increase revenue, but this also runs the risk of prompting more cancellations. Currently, the lowest-priced Max plan is $9.99 per month with ads, and Disney+ with Hulu also offers an ad-supported option at the same price.
Disney recently included Hulu, which features a more adult-oriented lineup, as a complement to Disney+, with Warner Bros. set to add even more content from their libraries.
Disney+ boasts over 100 million subscribers, while Hulu has an additional 50 million. When factoring in the linear HBO version, Max reaches over 97 million households.
Joe Earley, president of direct-to-consumer for Disney, commented, “Following the highly successful launch of Hulu on Disney+, this new bundle with Max will provide subscribers with even more variety and value. This exciting new partnership prioritizes subscribers, granting them access to blockbuster films, original content, and three extensive libraries showcasing the very best brands and entertainment in today's streaming landscape."