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Disney+ is gearing up for another significant transformation as it seeks to strengthen its position in the competitive streaming market.
Starting December 4, ESPN+ content will be integrated into Disney+, allowing subscribers to access sports programming alongside Disney’s signature catalog of movies and shows.
Credit: Disney
While we don’t know exactly when it will begin, Disney+ is also introducing a new feature that will allow users to pause their accounts instead of canceling them completely.
Why Is Disney Adding ESPN+?
This new feature mirrors Disney’s previous integration of Hulu, where dedicated tiles on the Disney+ homepage allow users to access content seamlessly. While the full benefits will be available to subscribers of Disney’s “trio” bundle—including Disney+, Hulu, and ESPN+—the company plans to make select ESPN programming available to all Disney+ users.
Credit: ESPN
The announcement came during Disney’s fiscal fourth-quarter earnings report, where CEO Bob Iger and CFO Hugh Johnston highlighted the platform’s progress. Disney+ added 4.4 million subscribers during the quarter, pushing its total subscriber base to over 120 million.
Disney’s Rocky Path to Streaming Recovery
Disney+ has had its share of ups and downs since launching in November 2019. It initially drew massive attention, gaining 10 million subscribers within 24 hours thanks to a library packed with Disney classics, Marvel hits, and Star Wars blockbusters. Shows like The Mandalorian became instant sensations, solidifying Disney+ as a major player in streaming.
However, growth slowed as the platform struggled to maintain its initial momentum. Production delays during the COVID-19 pandemic hampered the release of fresh content, and Disney+ faced criticism for relying too heavily on nostalgia. Subscriber numbers began to decline, with losses peaking at 1.3 million in a single month by early 2024.
Credit: Disney
The challenges extended to Disney’s leadership. Mounting losses—totaling over $11 billion since Disney+ launched—led to the departure of CEO Bob Chapek in 2022, with Bob Iger returning to once again helm the company. Iger inherited a service in dire need of a strategic overhaul, with aggressive spending and pricing tactics under Chapek failing to deliver sustainable results.
Strategic Changes Driving a Turnaround
In response, Disney+ implemented a series of changes that are beginning to pay off. The platform has cracked down on password sharing, raised subscription prices, and introduced an ad-supported tier to attract budget-conscious viewers. Additionally, Disney bundled its services, combining Disney+, Hulu, and ESPN+ into a single offering to increase value for subscribers.
Credit: Mika Baumeister, Unsplash
Content integration has also been a cornerstone of Disney’s strategy. Hulu content is now accessible directly on Disney+, and similar steps have been taken in international markets under the “Star” banner. Disney has also streamlined its services by phasing out standalone platforms like Star+ in Latin America and DisneyNOW in the U.S.
These efforts have started to yield results. In May 2024, Disney+ posted a $47 million profit, exceeding expectations by two quarters. The upcoming ESPN+ integration aims to sustain this momentum by broadening the platform’s appeal and enhancing its user experience.
What do you think of ESPN+ joining Disney+?
