Disney CEO Bob Iger says that Disney+ and Hulu will start merging into one app next month with an official launch early spring 2024.
Now that Disney is set to become the full owner of Hulu, CEO Bob Iger revealed during today’s quarterly earnings call that the company will begin combining Hulu content with the Disney+ app in December.
The beta test of the Disney+ and Hulu app will roll out next month, with the official launch expected in late March 2024. “We remain on track to roll out a unified one-app experience domestically,” Iger said. The time between the beta release and the official launch will give “parents time to set up parental controls” as subscribers will now be able to access more adult-oriented Hulu content. “We are bullish about the future of our streaming business,” Iger said. “Imagine the opportunities a combined Disney+, Hulu and ESPN streaming experience can offer us as a company and consumers.“
Disney assumed majority control of Hulu in 2019 as part of a “put/call” deal, which allowed either company to force a sale of the remaining stock. They announced last week that they would be acquiring the remaining 33% stake in the company.
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement. Under the terms of the arrangement, Disney will pay NBCUniversal $8.61 billion, which represents “NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney.“
However, that number might not be the final price that Disney has to pay. “Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023,” reads the press release, “and if the value is ultimately determined to be greater than the guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value. While the timing of the appraisal process is uncertain, we anticipate it should be completed during the 2024 calendar year.“