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Monday, Aug. 11, 2025 | 2 a.m.
Editor’s note: “Behind the News” is the product of Sun staff assisted by the Sun’s AI lab, which includes a variety of tools such as Anthropic’s Claude, Perplexity AI, Google Gemini and ChatGPT.
Disney is implementing major changes to its streaming platforms, consolidating Hulu into Disney+ and launching a standalone ESPN service. The media conglomerate is merging existing services, adjusting content distribution and renegotiating sports partnerships as it adapts to declining traditional TV revenues and an increasingly competitive streaming market dominated by Netflix and other platforms.
What’s happening with Hulu and Disney+?
Disney anticipates several operational and financial advantages from merging Hulu into Disney+. The consolidation will enable both services to operate on a single technology platform and back-end infrastructure, eliminating duplication and streamlining content delivery. Industry analysts project this could generate up to $3 billion in annual cost savings [50].
The integration is expected to create what Disney describes as a “far better consumer experience” by providing users access to both general entertainment and family content through one application [51]. When Disney previously tested closer integration between the services, user engagement increased, suggesting full integration could drive higher viewership and reduce subscriber churn [50].
Combining the platforms also enhances advertising capabilities by allowing Disney to sell inventory across both audience bases and create more sophisticated cross-platform sponsorship opportunities [52]. The unified approach strengthens Disney’s ability to market bundled services and increases the attractiveness of ad-supported subscription tiers [52].
Globally, Hulu will replace the existing Star hub on Disney+ and become Disney’s primary general entertainment brand internationally, providing consistent branding across markets. This global expansion allows Disney to invest more strategically in content for international growth while maintaining focused domestic spending [53].
ESPN launching all-in-1 standalone service
ESPN will launch a direct-to-consumer streaming service Aug. 21 priced at $29.99 monthly. The service includes access to ESPN’s network portfolio: ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ESPN Deportes, ESPN on ABC, ESPN+, ESPN3, SECN+, and ACCNX [15][16][17][18][19].
The platform will stream approximately 47,000 live events annually, covering college football, NFL games, tennis, soccer, volleyball, field hockey, WNBA and PLL playoffs, NBA, NHL, UFC and WWE events [15][16][17][18][19]. Studio programming includes established shows like “SportsCenter,” “Get Up,” “First Take,” “NFL Live,” “The Pat McAfee Show,” “Pardon the Interruption,” “College GameDay,” “NBA Today,” “Inside the NBA” and “The Rich Eisen Show.”
Additional features include multiview options, game statistics, betting information, fantasy sports integration and commerce capabilities [15][16][17][18][19].
Sports partnerships to reshape distribution
ESPN has negotiated significant content deals that will alter sports programming distribution. Beginning in 2026, ESPN becomes the exclusive U.S. streaming destination for WWE Premium Live Events, including “WrestleMania,” “SummerSlam,” “Royal Rumble,” “Survivor Series” and “Money in the Bank” [20][21][22][23][24]. The agreement includes pre- and postevent programming, with some content simulcast on linear ESPN channels.
ESPN’s NFL partnership expands substantially as the network acquires NFL Network and its assets, including NFL RedZone distribution rights [26][27]. ESPN will broadcast 28 NFL games per season, including three additional licensed games, while seven games continue on NFL Network under ESPN management [27][28][26].
The NFL arrangement extends to fantasy football, combining NFL Fantasy Football with ESPN Fantasy Football into a single platform [26][27]. ESPN will also stream select out-of-market NFL preseason games during 2025 and 2026 seasons, and NFL Draft coverage will extend to Disney+ and Hulu starting with the 2026 Draft [29].
Disney expanding reach through AI, tech deals
Disney is implementing AI-powered systems for content personalization across Disney+ and Hulu, using algorithms that analyze viewing patterns, genre preferences and user behavior to generate recommendations [8]. The company has also deployed AI for content localization, including automated dubbing and translation services to expand international distribution [9].
Advertising capabilities are being enhanced through a partnership with Amazon, providing advertisers access to Disney’s streaming inventory and audience data for targeted campaigns [10][11][8]. Disney uses what it calls “Magic Words” metadata tagging to enable contextual ad placement [10][11][8].
Why is Disney making these changes?
Disney’s restructuring addresses several financial and market pressures facing the entertainment industry. The company’s earnings show that while theme park revenue continues to grow, its legacy television business faces ongoing decline [44][45]. By consolidating platforms and launching direct-to-consumer services, Disney aims to offset losses from linear TV and capture revenue from cord-cutting trends [44][45].
The new ESPN service specifically targets viewers who have abandoned traditional cable packages, offering comprehensive sports content for a predictable monthly fee rather than requiring expensive cable subscriptions [46]. Disney CEO Bob Iger stated, “We don’t really look at being in the linear business and the streaming business. We’re in the television business. … We’re giving viewers a chance to watch our programming wherever they want” [44].
The consolidation also enables Disney to control direct relationships with subscribers rather than relying on cable intermediaries, providing access to detailed customer data and enabling personalized content recommendations and targeted advertising [45]. This shift toward direct-to-consumer relationships allows Disney to compete more effectively with Netflix by offering what industry observers describe as a “Netflix-plus-sports” combination [48][49].
Potential impact on viewing patterns
The ESPN-NFL deal creates a centralized platform for sports content that eliminates the need to switch between multiple apps [31]. Disney suggests this will provide more personalized content recommendations and viewing options, though the actual user experience remains to be tested [32][31].
The platform will offer different viewing formats, including traditional broadcasts and alternative streams with sports betting integration and family-friendly options [32]. The $29.99 monthly subscription is positioned as an alternative to cable packages, targeting consumers who have discontinued traditional pay-TV services [33].
Disney shifting business approach
Disney will stop reporting individual subscriber numbers for Disney+, Hulu and ESPN+ quarterly, following Netflix’s approach of focusing on engagement metrics rather than subscriber counts [7][3][4][2]. This change makes it more difficult to assess the performance of individual services.
The company plans to offer bundled subscriptions combining ESPN, Disney+ and Hulu for $29.99 monthly during an initial promotional period [2][3]. Hulu + Live TV will merge with Fubo through a joint venture, with both brands initially maintained separately before potential integration into Disney+ by 2026 [3][4][2].
Industry-wide streaming consolidation trends
Disney’s approach reflects broader consolidation patterns emerging across the streaming industry as companies seek profitability and reduced operational complexity. Several second-tier services are predicted to merge with competitors or face acquisition by larger companies in 2025, following examples like HBO Max and Discovery+ merging into Max and ongoing merger discussions involving Paramount Global [54][55].
Telecom and internet providers are increasingly offering unified bundles that combine multiple streaming services, providing consumers simplified access at lower aggregate costs while potentially accelerating migration away from traditional cable packages. Other platforms may adopt similar content library integration strategies to boost engagement and retention, mirroring Disney’s Hulu-Disney+ approach [56].
The industry is also expanding advertising-supported subscription tiers to appeal to cost-conscious consumers, with services experimenting with dynamic ad insertion and shared audience data similar to Disney’s innovations with Amazon [56]. Content spending rationalization is expected as companies limit investments in original programming and adopt more competitive pricing through strategic consolidation [59].
These market changes suggest streaming is moving toward a consolidated landscape dominated by fewer, larger integrated platforms, with smaller services focusing on specialized niches or regional content to remain competitive [54].
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