Warner Bros. Discovery
Walt Disney Also Unifies OTT Platforms
Paramount Global Considering
Consolidating Dispersed Apps to Strengthen Main App
Bob Chapek, CEO of Walt Disney, stated at an investor conference on the 14th (local time) that ultimately all streaming services could be grouped into the main app, 'Disney Plus (+)'.
[Asia Economy Reporter Cha Min-young] Following Warner Bros. Discovery, Walt Disney is also driving a trend toward unifying online video service (OTT) platforms in the global streaming market. The plan is to consolidate services that were previously dispersed across separate applications (apps) into a single flagship platform, creating an so-called 'all-in-one' ecosystem to retain consumers.
According to foreign media including The Wall Street Journal (WSJ) on the 17th, Walt Disney CEO Bob Chapek stated at an investor conference on the 14th (local time) that ultimately all streaming services could be grouped into the flagship app, 'Disney Plus (+)'. This means removing the segmented service barriers that were finely divided by user.
Until now, Disney has operated separate apps such as Disney+, which focuses on family-friendly content like Marvel and Pixar, Hulu, which mainly features war movies, and ESPN+, which centers on sports broadcasts. However, consumers complained about the inconvenience of switching between apps, causing the company to face challenges.
CEO Chapek named the new attempt a 'hard bundle' and emphasized the difference from the existing 'soft bundle' method. Soft bundling is a method of offering service bundle discounts during the sale of Disney-affiliated streaming apps.
Warner Bros. Discovery also announced in a recent earnings conference call that it plans to create a unified platform combining its OTT services 'HBO Max' and 'Discovery+'. [Image source=Reuters Yonhap News]
The app integration movement is not limited to Disney. Warner Bros. Discovery also announced plans to create a unified platform combining its OTT services 'HBO Max' and 'Discovery+' during a recent earnings conference call. The WSJ reported that Paramount Global is also considering abolishing 'Showtime' and integrating its content into 'Paramount+'.
With Disney's decision to integrate apps, negotiations to settle Hulu's equity stake are expected to begin. According to the WSJ, Comcast Group's NBCUniversal owns one-third of Hulu's shares. Under the 2019 agreement between the two companies, Disney can require Comcast to sell its stake starting in 2024 based on a minimum enterprise value of $27.5 billion. Conversely, Comcast also has the right to demand Disney to buy its stake.
Investors have also expressed agreement with Disney's all-in-one app integration plan, and the acquisition of Hulu's shares is expected to proceed sequentially. CEO Chapek emphasized, "To integrate Hulu into Disney+, we must have full ownership of Hulu," adding, "We want to reach the destination faster."
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