Disney confirmed today its plans to sell its three streaming video services – Hulu, ESPN+ and the upcoming Disney+ – bundled together for $12.99 per month in the U.S.
Disney+ will be priced at $6.99 per month when it launches on Nov. 12. Hulu’s ad-supported service is currently priced at $5.99 per month and ESPN+ costs $4.99 per month, meaning the bundle will provide a discount of approximately $5 on all three services combined. The bundle will be available on the same day that Disney+ launches.
Disney has previously mentioned the possibility of a streaming service bundle but this is the first time the company has confirmed it and provided pricing.
Disney is also working on more distribution partners for Disney+. CEO Bob Iger said that the company is still discussing distribution deals with partners like Apple and Amazon Channels and that he expects Disney will reach agreements with those companies.
“We think it’s important for us to achieve scale relatively quickly and they’ll [distribution partners] will be an important part of that,” Iger said during today’s earnings call.
In the lead up to the Disney+ launch, the company’s direct-to-consumer and international business has expanded to $3.58 billion in revenue, compared to $827 million in the year-ago quarter. Despite the revenue growth, the segment’s operating loss increased from $168 million to $553 million.
Disney attributed the increase in operating loss to the consolidation of Hulu in the segment’s results, increased investment in ESPN+ and costs associated with the upcoming launch of Disney+. The company also said the segment’s quarterly results benefitted from the inclusion of the 21st Century Fox businesses including Fox and National Geographic international channels, partially offset by a loss at Star India.
Disney’s consolidated revenues rose 33% from $15.2 billion to $20.2 billion.