Hulu + Live TV Adds Disney+ and ESPN+

Hulu + Live TV to Include Disney+ and ESPN+ with Price Adjustment

Starting next month, Hulu subscribers who utilize the Live TV service will experience a significant enhancement. Access to both Disney+ and ESPN+ streaming platforms will be integrated into their existing plans.

Price Increase Details

The change, effective December 21, 2021, will result in a $5 monthly increase for both the ad-supported and ad-free tiers of Hulu + Live TV.

Specifically, the Hulu + Live TV Ad-Supported plan will adjust to $69.99 per month, up from its previous price of $64.99. The Hulu + Live TV No Ads plan will similarly increase to $75.99 per month, compared to the former rate of $70.99.

Potential Cost Savings

While price increases are often met with resistance, this particular adjustment may be viewed favorably by some subscribers. A standalone Disney+ subscription typically costs $7.99 monthly or $79.99 annually.

ESPN+ is priced at $6.99 per month or $69.99 per year. Individuals already subscribing to either of these services separately would realize cost savings with the bundled offering.

Evolution of the Disney Bundle

Prior to this change, Disney had been promoting a “Disney bundle” that combined Disney+ and ESPN+ with either the ad-supported or ad-free Hulu plan for $13.99 or $19.99 per month, respectively.

A similar bundle for Live TV subscribers existed previously, and will now benefit from a $3 monthly discount, reducing the cost from $78.99 to $75.99.

Automatic Upgrade and App Access

The upgrade to Hulu + Live TV is automatic for existing subscribers. However, users will still require separate applications to access all content.

While ESPN+ content is already integrated within the Hulu app, Disney+ will remain accessible through its dedicated application. Hulu will provide users with an activation link via email and within their account settings to facilitate access to Disney+.

Existing Subscriptions

Subscribers who currently hold separate Disney+ or ESPN+ subscriptions will not be required to cancel them. If the email addresses associated with both accounts are identical and payment is processed through Hulu (and not a mobile carrier), the subscriptions will be automatically linked.

Hulu will issue a credit reflecting the retail value of existing subscriptions on the first billing cycle occurring on or after December 21.

Disney’s Strategic Investment in Hulu

This integration reflects Disney’s ongoing efforts to maximize its investment in Hulu since acquiring Fox in 2019 and subsequently purchasing AT&T’s 9.3% stake, granting full operational control.

Since then, Disney has restructured the organization, adjusted pricing, and consolidated certain content libraries.

Recent Organizational and Content Changes

Last year, Hulu’s organizational structure was revised to streamline reporting lines, directing executives to Disney’s Direct to Consumer and International chairman, initially Kevin Mayer.

Rebecca Campbell succeeded Mayer after his departure. Disney also integrated Hotstar’s South Asian programming into ESPN+ and Hulu, discontinuing the standalone Hotstar U.S. service in 2022.

Subscriber Numbers and Market Trends

Currently, Disney+ is experiencing faster growth and has a larger subscriber base than Hulu. As of Disney’s fiscal Q4 2021 earnings, Disney+ boasted 118.1 million subscribers, a 60% year-over-year increase.

Hulu, encompassing all tiers, had 43.8 million subscribers, representing a 20% year-over-year growth. Hulu’s Live TV service has 4 million subscribers, a slight decrease from 4.1 million the previous year, potentially indicating a perceived decline in the value of live television.

However, it remains larger than Sling TV, which has 2.56 million subscribers.

Potential Impact of the New Bundle

Disney anticipates that this new bundle will stimulate growth in Hulu + Live TV subscriptions by encouraging upgrades and attracting new sign-ups. Alternatively, it could lead to further cancellations if users opt for the more affordable Disney bundle without live TV.

Correction: The previous bundle options were misstated. A Live TV + Disney+ bundle was previously available and is now being discounted. This article has been updated to reflect this correction.