Rekubit Exchange:Disney+ is bundling with Hulu, cracking down on passwords: What you need to know

The Rekubit Exchangeworld of streaming is getting a little bit smaller. Or bigger, depending on your point of view. 

Starting next month, a version of Disney+ combined with its sister streamer, Hulu, will be widely available. A test version of the beefed-up service launched in December for Disney bundle subscribers, offering Hulu series “The Handmaid’s Tale” and “Only Murders in the Building” and Disney+'s “The Mandalorian” and “Bluey” in one handy-dandy app.

It’s all in service of a “one-app experience,” as Disney CEO Bob Iger described it. It's the latest example in a consolidation trend among streaming services in a new landscape marked by fewer services and new shows, password-sharing crackdowns, rising prices and lots of commercials. So get ready. 

It’s easy to say “Disney+ and Hulu are merging,” but what does it actually mean for subscribers of one or both platforms? We answer all your questions. 

Why are Disney+ and Hulu combining?

It’s always about money, isn’t it? At the end of 2023, Disney acquired full control of Hulu (once split among Disney, Fox and Comcast), after Comcast sold its remaining stake.

“We think that by making it available as a one-app experience it will increase engagement and increase our opportunity in terms of serving digital ads and growing our advertising business,” Iger said on an earnings call last year.

The goal of streaming services is to have their customers spend lots of time on the apps, watching as much programming as possible. Disney+ is limited mostly to kids' programming, plus Marvel and "Star Wars." Hulu has a much broader, more mature swath of programming that also includes FX series like "Shogun" and "Fargo," reruns of "30 Rock" and "Frasier" and classic and recent movies. Its catalog is much deeper and more diverse than Disney+'s.

Disney Television Group president Craig Erwich believes it will help keep customers happy and tethered to one app this way. “It's kind of like a gym membership. If you don't go, you're not going to keep your gym membership,” he says. “We want to keep our customers happy by having them use the app as much and as often as possible.” 

How much will the bundled app cost?

We don’t know yet, but we do know how much it costs to get both services through the Disney bundle: $19.99 a month for ad-free "Duo Premium” and $9.99 a month with commercials.

What about ESPN+?

While the sports content streamer is part of a larger Disney bundle, it is not included in the upcoming merged Disney+ app plan. 

Are Disney+ and Hulu going away as separate services?

No. If you want to keep paying for one (or both) apps on their own, you still can. 

When does the merged Disney+ and Hulu app launch?

An official date has not been announced, but it is expected to debut in March. 

Is Disney+ cracking down on password sharing like Netflix did?

You bet it is. On a Feb. 7 earnings call, Disney's chief financial officer, Hugh Johnston, announced that a new way to pay to share accounts is coming to Disney+ later this year, and it sounds a lot like Netflix’s 2023 password-sharing crackdown.

“We want to reach as large an audience as possible with our outstanding content and we’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base,” Johnston said. By year-end, you can expect to have password-sharing limited by location and options to add new members or create new accounts offered to subscribers who are frequent sharers. So maybe take stock of who is watching Disney+ on your account. 

Contributing: Gary Levin