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Survey: Nearly 33% of Hulu Subscribers Bundle With Disney+; Bundling Crucial to Reducing Churn

David Satin

Many have speculated that the way forward for an increasingly mature streaming market is aggregation. With over 300 subscription video-on-demand (SVOD) services currently available to American consumers, sooner or later some will have to be folded into others, or at least bundled together to provide a streamlined product at a lower price for customers who are otherwise spread too thin.

The London-based media analytics firm Ampere Analysis has released a new report which validates bundling as a solution for streaming companies. The report found that the Disney Bundle is an effective tool against price sensitivity among customers, and Hulu’s U.S. sign-up and cancelation rates now mimic those of Disney+ thanks to the bundle, and almost one-third (32%) of total Hulu users have bundled it with Disney+.

For all SVOD platforms, customers who cancel are primarily in younger, lower-income demographics, making them more sensitive to pricing and content changes. Discounted ad-supported tiers can help to mitigate churn with these customers, but bundling is a powerful tool for addressing price sensitivity as well.

“The increasingly competitive SVOD market makes it hard for established services to maintain growth, while newer players continue to see strong gross additions but struggle to retain those customers,” Ampere Analysis analyst Mayssa Jamil said. “Pricing and content offering being the main drivers for sign-up and churn, a great way to aid customer retention is through bundling: it combines both of the above by offering larger catalogues and more frequent content additions at cheaper prices. We see this at play when looking at the way Hulu and Disney+ sign up and churn rates increasingly mimic one another thanks to the strength of the Disney Bundle.”

The similarities in subscriptions between the two services can clearly be seen with Ampere’s graph. Disney+ saw a spike in new sign-ups on Disney+ Day, when titles like “Thor: Love and Thunder” and the live-action adaptation of “Pinocchio” hit the service. The next large peaks fall on Sept. 19, with the Disney+ debut of “Dancing with the Stars,” and on Sept. 30 with the release of “Hocus Pocus 2.”

Interestingly, Hulu also saw corresponding subscription spikes during these periods, a clear sign that the Disney Bundle drove new users to both services. The real question for Disney is whether it can maintain the price-conscious image that the bundle offered before prices changed with the launch of the Disney+ ad-supported tier on Dec. 8. The new subscription option was accompanied by price hikes for most tiers of the Disney Bundle, so it will bear watching to see if customers continue to view it as a good bargain in the coming months.

Stacking and market saturation are real dangers to some streaming services. U.S. homes have access to an average of 4.5 SVOD services each, and with monthly subscription fees rising across the industry, many budgets won’t allow for an expansion past that mark. Companies like Disney that have the ability to bundle their services together at a lower price point have a marked advantage in both driving new sign-ups and decreasing churn.

  • Hulu

    Hulu is a video streaming service that gives access to thousands of full seasons of exclusive series, hit movies, kids shows, and Hulu Originals like The Handmaid's Tale.

    It offers a good selection of current TV shows and its ad-supported tier is cheaper than both Netflix and Amazon Prime Video. You will be able to watch most shows from networks like ABC and Fox, and cable channels like FXX, FXM, HGTV, and more.

    The service has a Limited Commercials plan for $7.99 a month, or you can upgrade to their No Ads plan for $14.99 a month. For $69.99 a month, you can get Hulu Live TV from major cable channels, live locals and regional sports networks.

  • Disney+

    Disney+ è una nuova piattaforma di video in streaming senza annunci pubblicitari che offre serie TV e film esclusivi targati Disney, Pixar, Marvel, Star Wars, National Geographic e molto altro. La Disney ha annunciato che il suo servizio streaming debutterà nel Regno Unito il 24 marzo 2020.

    Il suo costo sarà di €8.99 / mese o €89.99 / anno (€7.50 / mese).

    L’app supporta lo streaming in 4K, download illimitati, streaming in simultanea su 4 dispositivi e fino a 7 profili con centinaia di avatar per personalizzarli.

    L’abbonamento per il primo anno comprende 25 nuove serie e oltre 10 film originali, 7.500 vecchi episodi, 100 film recenti e 400 titoli disponibili in catalogo, inclusa l’intera produzione Disney. Sulla piattaforma saranno disponibili nuove uscite come “Toy Story 4”, “Il re leone” e “Aladdin”, ma anche classici come “La sirenetta” e “Cenerentola”.

    La società ha annunciato diverse serie TV e film originali che saranno disponibili al lancio, compresi gli 8 episodi dello spin-off di Star Wars “The Mandalorian”, costato 100 milioni di dollari, “High School Musical: The Musical: La serie”, “The World According To Jeff Goldblum”, “Lilli e il Vagabondo” e “The Imagineering Story”.

    Per vedere l’elenco completo di serie TV, show e film targati Disney, Disney Channel, Star Wars, Pixar, Marvel e National Geographic disponibili o l’intero catalogo di Disney+, visita il nostro elenco di film in streaming di Disney+.

    Abbonati ora

    Ottieni Disney+ a soli €7.50 / mese. Quando Effettui il Pagamento Anticipato per il Piano Annuale


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