How Much Will Bundle of Max, Disney+, Hulu Cost? Will it Reduce Churn for Disney and Warner Bros. Discovery?

Warner Bros. Discovery CEO David Zaslav has fulfilled his own prophecy: Nearly a year ago to the day, Zaslav told observers at a tech conference that he believed streaming services would be compelled to bundle together in the near future, as market forces would dictate a consolidation of the streaming industry. That outcome has largely come to pass, as a market saturated with on-demand services and an increased focus on profitability has left some entertainment executives searching for answers. Disney and WBD decided to take matters into their own hands this week, announcing on Wednesday that they would launch a bundle of Disney+, Max, and Hulu at some point this summer. The move appears intended to help both companies reduce churn for their streamers, and The Streamable’s experts are set to predict what we think you can expect to pay for the service when it becomes available.

Key Details:

• Disney+ offers four bundle variations already, with savings of up to 44% from what viewers would pay to get the services individually.
• WBD and Disney have revealed that ad-supported and ad-free versions of the new bundle will be available.
• Data shows that bundling Disney+ with Hulu causes lower churn, as viewers see the combined product as a better value.

The price of the forthcoming Disney+, Hulu, and Max bundle will depend on a number of factors, but data available regarding Disney’s current streaming bundle options can be instructive. Disney offers several bundle combinations, including ad-supported and ad-free versions that combine just Disney+ and Hulu, as well as packages that include ESPN+.

Prices start at $9.99 per month for ad-supported Disney+ and Hulu together in the Duo Basic bundle, which represents a monthly increase of just $2 over what viewers would pay to get ad-supported streaming from either service on its own. Tacking ESPN+ to that ad-supported bundle creates the Trio Basic package, and raises the price to $14.99 per month, a savings of 44% over the $26.97 that they would cost separately. Ad-free Disney Bundles range from $19.99 per month for Duo Premium to $24.99 for Trio Premium.

Adding Max’s ad-supported plan ($9.99 per month) to the Duo Basic bundle would cost $19.98, but the entire point of a streaming bundle is to offer services for a lower price than they would cost individually in order to make it harder for customers to cancel. An absolute minimum of $14.99 per month to add Max to the Duo Basic bundle seems likely, the same price as the Trio Basic bundle currently. WBD could easily make the argument that putting Max alongside those streamers is worth more to customers than adding ESPN+ to the equation, given that viewers can watch news, sports, and entertainment on Max. Therefore, we predict that the ad-supported bundle of Max, Disney+, and Hulu will cost $17.99 per month.

Going ad-free with all three services will certainly be a bit more expensive, but how much more? Separately, ad-free plans of these three services cost $47.97 per month, so a bundled price point of $30 to get them all at one price makes sense. That would represent a discount of a little over 38%, which is right in line with Disney’s current bundle choices.

Will the Disney+/Max/Hulu Bundle Reduce Churn?

Substantial discounts don’t just convince customers to sign up for streaming bundles, they’re also instrumental in keeping viewers subscribed to the services contained within. The Disney Bundle has been quite successful in keeping American subscribers signed up with its attendant streamers, and Disney CEO Bob Iger said in March that around 50% of new Hulu customers decide to bundle with Disney+ because the value is so good.

Max’s churn rate is another story. Using data from Antenna, The Streamable observed Max (then HBO Max) with a churn rate of 7% in May 2023. Further research from Antenna shows that WBD was not able to materially lower Max’s churn rate over the course of the year, and a lack of new prestige series from HBO thanks to Hollywood work stoppages in 2023 has left many viewers feeling they can wait for a new season of “House of the Dragon” or “The White Lotus” to arrive before needing Max again.

In short, this bundle could be exactly what the doctor ordered for Max. Its high-quality entertainment options are highly complimentary of Hulu’s general entertainment lineup, as well as Disney+’s franchise- and kid-focused approach to TV. It also carries live news and other content from CNN, and live sports from TNT, TBS, and truTV in its Bleacher Report Sports add-on. Disney+ will soon boost the number of sports available in the bundle with Max, as it will incorporate some live sporting events from ESPN at some point in 2024.

The Disney+, Max, and Hulu bundle stands a very good chance of becoming a must-keep for streaming customers, especially if it’s priced with discounts as aggressive as The Streamable predicts. It’s a game-changer for the entire streaming industry, and it could lead to the onset of a new wave of aggregation.