According to reports, Disney's streaming technology teams are working to make a separate Hulu app unnecessary. A screenshot from an internal document obtained by Business Insider shows a multi-phase plan called “Project Gemini” to bring Hulu content and features to Disney+. According to the document and two streaming employees, the unified experience is expected to be ready by the end of the year.
“Hulu's technology stack and app will be retired once users are fully migrated” to Disney+, the document says.
Three high-ranking Disney technical employees confirmed that the company is reducing resources devoted to Hulu and is no longer developing significant new features in the app.
“Hulu is currently on life support with no active development” said a seasoned streaming product employee. He added that fewer people working on the app could mean longer bug fixing times.
It's a common practice in the tech industry: companies gradually phase out investments in specific products while steering users to preferred alternatives. An example is Microsoft phasing out Internet Explorer in favor of Edge or Warner Bros. replacing HBO Max with the new Max service. Discovery.
Disney has been integrating Hulu content and features with Disney+ for years to strengthen its key streaming platform.
Disney bundle subscribers can now watch all Hulu content on the Disney+ app, and Disney+ exclusive users can access select Hulu shows. At the end of May, the company introduced the function of synchronizing the “to watch” list and viewing history between Hulu and Disney+. According to the employee, Disney+ is also expected to gain additional Hulu-specific features, such as live TV channels and recording (DVR).
Hulu's integration with Disney+ is part of the company's broader strategy, promoted by Disney CEO Josh D'Amaro, to unify resources and increase efficiency. The company hopes that the combination of Hulu and Disney+ will improve streaming profitability, reduce user churn and help compete with market leader Netflix.
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“It makes no sense,” say employees
Once the integration is complete, the existence of a separate Hulu app will no longer make sense, employees say.
“It doesn't make sense to maintain two separate systems,” said one software engineer. Another added that “there are a lot of elements that need to be moved.”
The merger of Hulu and Disney+ is part of the “One Disney” strategy promoted by Josh D'Amaro.
In his first address to employees, D'Amaro emphasized the need to act as “one Disney,” bringing teams together to “reach people wherever they are” and “deepen their relationship with Disney.”
The inclusion of Hulu in Disney+ increases convenience and reduces fragmentation of the offering, while encouraging users to discover new content. Marvel fans can find comedies from Hulu and vice versa, which helps keep users interested.
Even as separate services, bundling Hulu with Disney+ helped the company sell subscription packages, increasing revenue per user and reducing churn. In April, U.S. churn rates for Disney+ and Hulu were lower than for all major platforms except Netflix, according to data from Antenna.
Disney wants to “naturally drive users to migrate” from Hulu to Disney+ by offering a better user experience, a product official said. There is still an option to subscribe exclusively to Hulu, although it is hidden deep within the website.
In addition to benefits for consumers, integration also brings operational effects. The company merged its streaming ad servers last summer and its streaming teams after recent layoffs, creating, among others, new group “Domestic Growth”.
Still, there were different approaches within the company about the future of the Hulu app. Product management was concerned about “migrating large numbers of users away from a popular platform,” while general management was focused on unifying the platform “for greater visibility and cost reduction.”
Ultimately, Disney wants to transform Disney+ into the so-called a super application in which users will be able not only to watch content, but also buy products, tickets to amusement parks, cruises and movies.
Such a super app could “increase time spent with Disney brands and maximize revenue from the entire ecosystem,” said media consultant Hernan Lopez of Owl & Co.
The article is a translation from American edition of Business Insider
