What just happened? Streaming services from traditional media companies lost billions collectively last year, indicating that their attempts to compete with Netflix are failing. For some of them, consolidation seems to be the new strategy. However, viewers wonder whether increasingly expensive streaming bundles are recreating the cable landscape that initially pushed cord-cutters to Netflix.
Starting this summer, viewers can subscribe to a new streaming bundle combining all content from Disney+, Hulu, and Max (HBO). Disney and Warner Bros. haven't provided exact pricing or release details yet.
The bundle will be available through the websites of any of the three individual services. Ad-supported and ad-free tiers will be available.
How the new offering affects subscriptions to the standalone channels remains unclear. However, Bloomberg reports that Warner Bros. plans to raise the subscription price of Max as part of a strategy to earn at least $1 billion from streaming next year. Cost-cutting measures, which could include additional layoffs, are also to be expected.
The moves follow a tough year for Warner Bros., Disney, Paramount, and Comcast. Although WB profited moderately from streaming in 2023, the other three combined lost over $5 billion, with Paramount in the worst position.
After Netflix's initial explosion in popularity, traditional media companies pulled their content from the service and attempted to compete with it directly. However, cord-cutters appear unwilling to subscribe to several streaming apps simultaneously to access the shows and movies spread between them.
Furthermore, they're still cutting the cord, leading to an unending decline in TV and advertising revenue, thus squeezing the companies from both sides, with mergers as the response. Meanwhile, Netflix has remained mostly profitable, still picking up millions of subscribers.
The state of streaming after Disney+, Hulu and Max agreed to a new bundle pic.twitter.com/7jWOSikz8T
– Trung Phan (@TrungTPhan) May 9, 2024
The new bundle adds Max to the Hulu-Disney+ package that debuted last month. The current offering starts at $9.99 monthly for the two streaming channels, while paying $14.99 monthly adds ESPN+. Including Max will certainly increase the price, but the announcement didn't mention an option that includes ESPN.
Ever since the strategy of giving every company its own streaming service began failing, some have expressed fears that they could recombine into something suspiciously reminiscent of old cable bundles. One primary reason cord-cutters initially ran to Netflix was to escape expensive packages forcing consumers to pay for hundreds of channels, most of which they never watched.