Walt Disney Co (NYSE:DIS), Disney Entertainment, and Warner Bros. Discovery Inc (NASDAQ:WBD) have launched a new streaming bundle in the U.S., combining Disney+, Hulu, and Max.
The bundle is available for purchase on any of the three streaming platforms' websites.
The bundle costs $16.99/month with ads and $29.99/month without ads, offering up to 38% savings compared to purchasing the services separately, Variety reports.
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The new offering combines three popular streaming services into one monthly subscription, providing a broad range of content from top entertainment brands, including ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, Star Wars, and Warner Bros.
This bundle gives subscribers access to franchises like Family Guy, Bob's Burgers, Disney's Frozen, The Avengers, Star Wars, Toy Story, Batman, Game of Thrones, Lord of the Rings, and Harry Potter.
This ad-supported bundle offers savings of up to 38.8% compared to purchasing the services separately.
The individual prices are Disney+ Basic at $7.99, Hulu with ads at $7.99, and Max With Ads at $9.99. The no-ads bundle saves nearly 35% compared to the standalone prices, with Disney+ Premium at $13.99, Hulu no-ads at $17.99, and Max Ad-Free at $16.99.
The strategy behind this partnership aims to increase engagement and reduce churn rates. Additionally, bundles can lower customer acquisition costs.
The partnership is crucial for Warner Bros. Discovery, which just lost its long-standing NBA broadcasting rights to Disney, Comcast Corp (NASDAQ:CMCSA), and Amazon.Com Inc (NASDAQ:AMZN).
Warner Bros Discovery stock has lost over 37% in the last 12 months. Disney gained 4% in the last 12 months.
On July 25, Macquarie downgraded Warner Bros. Discovery from Outperform to Neutral with a $9 price target.
Price Actions: WBD shares traded higher by 4.13% at $8.12 at the last check on Friday. DIS is up 0.66% at $89.80.