Can Disney's Streaming Reorganization Hold Back the Dam?

Disney CEO Bob Iger has announced the company's plan to merge its streaming service, Disney+, with Hulu into one app. The shift to attach Hulu's general entertainment to the franchise properties of Disney+ is a reaction to the company's disappointing results in Q1 2023, which saw a 2% drop of subscribers to Disney+. The announcement comes after Iger had mentioned on previous occasion that everything, including Hulu, was up for discussion. The primary challenge now for Iger will be the ability to increase the company's subscriber base, which has been difficult to maintain for Disney+. As reported by Reuters, one rare success for Disney came from its theme parks division, particularly overseas. However, its broadcast and cable networks saw a decline in operating income and ESPN's separate reporting segment will need to show positive results to aid the company's bottom line. Comcast, which owns one-third of Hulu, will be the deciding factor in the final product, so it remains to be seen how the new app will be offered to viewers.

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