By Joe Flint
Disney and Warner Bros. Discovery said they are teaming up to offer a bundle of their streaming services, the latest move by media companies to try to simplify choices in the crowded streaming business.
Consumers will be able to sign up for a package that includes Disney's Disney+ and Hulu and Warner's Max service. The bundle will be offered for both the ad-free and ad-supported versions of those services and will be available in the U.S. beginning this summer.
Pricing details weren't disclosed, but people familiar with the matter said the bundles would likely be offered at a discount. Currently, Disney+ and Hulu with ads are sold together for $9.99 a month. Max with ads is also sold at $9.99 a month. The ad-free services are more expensive.
Media companies are increasingly finding ways to package and bundle their streaming services, in a bid to win more subscribers and provide larger destinations for advertisers.
"This new offering delivers for consumers the greatest collection of entertainment for the best value in streaming," said JB Perrette, CEO and president of global streaming and games at Warner Bros. Discovery, in a statement. Warner reports quarterly results on Thursday.
Last year, Verizon began offering the ad-supported versions of Max and Netflix for $10 a month combined, instead of $17 a month. Paramount over the past several months had discussions with both Apple and Comcast about bundling their streaming services, The Wall Street Journal reported.
Warner and Disney are already partners, alongside Fox, in an as-yet unnamed sports-streaming joint venture that aims to pool all their sports content and launch later this year.
Warner and Disney had been working on the partnership since last summer, a person familiar with the matter said.
Warner Discovery Chief Executive David Zaslav has long called for more bundling among rival streaming services as a way to not only better serve consumers but also to potentially thin the herd of competitors.
It is challenging for rival media companies to strike these sorts of partnerships. They have to agree on how to share customer data and split revenue. The bundle the companies are planning would let consumers, with one monthly fee, sign up for three of the biggest streaming services on the market, each of which has different strengths.
Disney+ has a strong offering for children and families -- an area where Max has been challenged -- as well as Star Wars and Marvel content. Max is home to HBO shows such as "House of the Dragon" and "True Detective" as well as popular originals like the comedy "Hacks." The Max content will be a natural fit alongside Hulu's programming, including originals such as "The Bear" and shows from Disney's ABC network such as "Abbott Elementary."
"The very best brands and entertainment in streaming today," said Joe Earley, president of Disney Entertainment's direct-to-consumer unit.
Earlier this week Disney reported its streaming unit had cut losses to $18 million in the quarter that ended in March, compared with a loss of $659 million in the year-earlier quarter. CEO Bob Iger said the company expects to turn a profit in streaming in the final quarter of its fiscal year that ends in September.
Warner's direct-to-consumer unit -- which includes HBO's cable subscription results as well as content sales to rival streaming services -- is slightly profitable. The company is under pressure to boost its streaming business, given the weakness of its traditional cable TV operations, which have been hit by cable cord-cutting and a soft advertising marketplace.
Disney and Warner will be among the many media companies presenting their content offerings to advertisers later this month in advance of the 2025 television season.
Write to Joe Flint at Joe.Flint@wsj.com
(END) Dow Jones Newswires
May 08, 2024 19:46 ET (23:46 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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