Disney+ Will Shut Down in December, Losing Hundreds of Millions

As part of an entertainment giant that has been struggling to connect with audiences, as indicated most recently by the flop of “The Marvels,” which was criticized for its woke trailer, the streaming service Disney+ will soon be a thing of the past, Disney CEO Bob Iger said.

According to Inside the Magic, despite its vast array of family favorites — the Marvel Cinematic Universe, the Star Wars franchise, and others — Disney+ has been struggling to compete with other streaming services such as Netflix, resulting in the loss of hundreds of millions of dollars. But on the whole, Disney has lost billions. In March 2021, the company’s market cap was roughly $358 billion. Today, it is roughly $155 billion.

As a recent earnings report reportedly shows, Disney’s attempt to corner the streaming market has failed despite increasing subscription prices and removing original content.

According to USA Today, in October, Disney changed the pricing for their ad-free streaming services. The ad-free version of Disney+ now costs $13.99 per month, up from $10.99, while the ad-free version of Hulu increased from $14.99 to $17.99 per month.

Now, Iger seems determined to follow through on a promise of shutting down the streaming service and replacing it.

Disney is set to fully acquire Hulu, suggesting a shift toward consolidating its streaming assets. Starting in December, a beta service combining Disney+ and Hulu will launch, with a full transition by March 2024.

Iger’s plan responds to the need for a more competitive edge in streaming and addresses the broader content range that Hulu brings to the table, which is not exclusively family-oriented.

The move to a combined streaming platform indicates a shift in Disney’s bundle strategy, potentially offering more integrated services and upsell opportunities. Despite the streaming losses, Iger is betting on a revised ESPN+ with new features like live TV and sports betting, marking a significant pivot from Disney’s traditional brand. The new approach aims to adapt to changing market conditions and consumer preferences, though it may lead to a reevaluation of subscriptions by current Disney+ users.

Conservatives and Christian groups have been boycotting Disney for its political activism and earlier this year Disney reported Disney+ and Hulu had lost over 4 million subscribers.