Disney+ Incorporates Live TV, Hulu Profiles in Retention Drive
Disney is revamping its Disney+ streaming service to include live TV and Hulu user profiles in an effort to boost user retention and reduce churn. According to CFO Hugh Johnston, Disney+ will bring virtual multichannel video programming distributor Hulu + Live TV into the app by the end of the year.
The combination will feature an interactive TV guide on the streaming service's user interface, allowing users with a live-TV bundle to access local broadcast affiliates and pay-TV news and entertainment channels without leaving the platform. Disney has also rolled out 24/7 linear, always-on channels that function like traditional TV, organized under a dedicated Live Hub tile in the navigation menu.
All subscribers will have access to ABC News Live, while premium-tier subscribers will get curated 24/7 feeds for popular franchises such as 'The Simpsons' and 'Star Wars'. Disney is also combining its Disney+ and Hulu profile accounts, creating a single-fan ecosystem that allows users to easily switch between services.
Johnston emphasized the importance of live TV in driving engagement and reducing churn, noting that members who use live TV tend to stick with the service longer. He also downplayed concerns about cannibalization from a potential Disney+ FAST channel, suggesting that it can be managed like ESPN's free app.