
Disney+/Hulu/Max Bundle Sees Impressive Retention Rates
Last summer, Disney and Warner Brothers Discovery launched a streaming bundle in the United States featuring Hulu, Disney+ and Max.
The bundle was priced at $16.99/month with ads and $29.99/month without ads – a savings of up to 38% compared with the price of the services purchased separately.
The bundle brought together the three popular streaming services all through a single monthly subscription, while providing a wide selection of content from the biggest and most beloved portfolio of brands in entertainment including ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, Star Wars, Warner Bros., and many more.
According to a new report by the WSJ, offering three streaming services at a discount has shown early signs of success in keeping customers subscribed, according to new data from subscription analytics firm Antenna.
The data shows that 80% of the bundle’s subscribers who signed up between July and September are still subscribed to the bundle three months later.
This data has also shown that the triple bundle has a higher retention rate than Disney’s own streaming bundles, which include Disney+, Hulu and ESPN+.
The triple bundle of Hulu, Disney+ and Max was able to keep subscribers at a higher rate than Netflix, which was able to keep 74% of people who started subscribing to Netflix between July and September, and still being subscribed three months later.
Brendan Brady, Antenna’s strategy director, said:
“Warner and Disney to some degree have built their entire business around the cable bundle, so they’re very comfortable with bundling. We’re starting, increasingly, to see it come back.”
According to Antenna data, 2.2 million subscribers had signed up for the triple bundle of Disney+, Max, and Hulu by the end of 2024.
One of the biggest challenges streaming services face is trying to keep subscribers. While for years they were attracting new subscribers with discounts and lower prices, as the industry evolves, keeping customers is much harder.
The streaming platforms have to continue to offer new content while offering a vast back catalogue, but with so many different options available, many people are now rotating streaming services to save money, especially if they feel they don’t have anything worthwhile watching. That’s why many of the streaming services use a weekly release schedule for major new releases to help spread out content over multiple months and avoid people just dipping in for a month and bailing.
Back in the days when cable television was dominant, companies locked customers into long contracts that bundled channels together, and there was little alternative. But with the growth of streaming services, which don’t lock customers into long contracts, companies are trying to figure out how to keep people paying month after month.
Disney has stated on many occasions that the Hulu, Disney+, and ESPN+ bundles have much higher retention rates than single subscriptions. Bringing the content from Hulu and ESPN+ into Disney+ also keeps retention high.
The triple bundle of Disney+, Hulu and Max together is an excellent option for people who are already subscribed to all three services. It’s also easier to justify keeping the bundle if customers are watching something regularly on one of the platforms. So if a customer is currently enjoying “The White Lotus” on Max and “Paradise” on Hulu, they might not be watching any new original on Disney+ until “Daredevil: Born Again”, but because they are still using something within the bundle, it still offers value.
Many internet, telephone, and cable providers already offer a selection of streaming services in a package. As more data becomes available, we will probably start seeing more bundles of streaming services, since in the long run, this is a method that’s worked for decades for TV and companies love a steady stream of income from reliable customers.
What do you think of the Disney+, Max and Hulu bundle? Let me know on social media!