Disney+’s Bold Moves: Will They Pay Off?
Published On: August 7th, 2025
Disney is making sweeping changes to its streaming strategy, signaling a major shift in how it measures success and delivers content. The company recently announced it will fully integrate Hulu into Disney+, stop reporting subscriber numbers, and focus on profitability over growth metrics—a move mirroring Netflix’s earlier decision to withhold subscriber data. These decisions reflect a maturing streaming industry where sheer subscriber counts no longer tell the full story. Instead, Disney is betting on bundling, ad revenue, and operational efficiency to solidify its position in the competitive streaming wars.
The end of the standalone Hulu app?
Disney confirmed that Hulu’s standalone app will be phased out in 2026, replaced by a fully integrated Disney+ experience that combines Disney’s family-friendly content, Hulu’s general entertainment, and ESPN’s sports offerings. This merger is expected to:
- Save Disney $3 billion by eliminating redundant tech and administrative costs
- Reduce subscriber churn by offering a one-stop entertainment hub
- Boost ad revenue through unified ad sales and better targeting
Internationally, Hulu will replace the "Star" tile on Disney+, expanding its general entertainment reach. The move aligns with Disney’s strategy to streamline operations while giving users a more personalized experience. However, it also raises questions about brand identity, such as, “Will Hulu’s edgier content blend seamlessly with Disney+’s family-oriented catalog?”
Why Disney is no longer reporting subscriber numbers
Starting in Q1 2026, Disney will stop disclosing subscriber counts and average revenue per user (ARPU) for Disney+, Hulu, and ESPN+. The reasoning? These metrics have become "less meaningful" in evaluating performance as Disney shifts focus to profitability and engagement.
This decision mirrors Netflix’s 2024 move to halt quarterly subscriber updates in favor of emphasizing revenue, margins, and content performance as more meaningful metrics. For Disney, this shift signals a broader industry trend away from the "growth at all costs" model that once defined the early streaming wars. Instead, the company is placing greater emphasis on monetization strategies, including ad-supported tiers and bundling, to drive sustainable revenue. More importantly, it reflects a strategic pivot where content quality and long-term viewer retention now take precedence over raw subscriber numbers, a clear acknowledgment that retaining engaged audiences is more valuable than chasing fleeting sign-ups
The last reported Q3 figures showed 183 million combined Disney+ and Hulu subscribers, with Disney+ alone reaching 128 million. But with streaming now profitable ($346 million in operating income last quarter), Disney is signaling that financial sustainability is the new priority.
What this means for Disney’s business and viewers
1. A stronger, more profitable streaming model
Disney’s streaming division, once bleeding money, is now a key profit driver, with full-year DTC operating income guidance raised to $1.3 billion. The Hulu-Disney+ merger should further cut costs and improve margins, while ESPN’s standalone streaming launch on August 21, 2025, adds another revenue stream.
2. A shift in content strategy
Disney is doubling down on franchises (Marvel, Star Wars, Pixar) while leveraging Hulu’s general entertainment to keep diverse audiences engaged. Shows like Andor, which grew viewership over time, prove that quality storytelling retains subscribers. Expect more cross-platform ‘synergies’, like Lilo & Stitch boosting Disney+ viewership after its box office success.
3. The future of bundling and pricing
Disney is aggressively pushing bundled subscription packages as a key part of its streaming strategy. One of the most notable offerings is a promotional deal combining Disney+, Hulu, and ESPN+ for $29.99/month, designed to lock in subscribers across its platforms. At the same time, ad-supported tiers are becoming increasingly crucial, with Disney leveraging unified ad technology to improve targeting and maximize ad revenue.
These moves suggest that Disney is experimenting with more flexible, and potentially more costly, subscription models in the future. The challenge will be striking the right balance between attracting new users and increasing revenue per subscriber, especially as competition in the streaming space continues to intensify.
4. The decline of linear TV and ESPN’s pivot
While streaming grows, Disney’s traditional TV networks, including ABC and FX, continue declining, with linear TV operating income down 28% last quarter. ESPN’s future hinges on its direct-to-consumer shift, bolstered by NFL and WWE deals.
A new era for Disney streaming
After showing signs of trouble earlier this year, Disney’s latest moves reflect an industry-wide shift from subscriber wars to sustainable business models. For viewers, this could mean:
- A more seamless, all-in-one app experience (but potential content dilution)
- More targeted ads and possibly higher prices as Disney maximizes revenue
- Stronger cross-platform content strategies, leveraging hits across movies, TV, and streaming
Financially, Disney is betting big on integration and efficiency. If successful, it could solidify Disney+ as a long-term powerhouse, but if mishandled, it risks alienating niche audiences who loved Hulu’s standalone identity. One thing is clear: The streaming game has changed, and Disney is playing to win.