Disney, WBD offer customers a new bundle: Here's what's in it

Disney (DIS) and Warner Bros. Discovery (WBD) are teaming up to release a brand new streaming bundle including Max, Disney+, and Hulu. Yahoo Finance's Alexandra Canal reports on the new joint venture and what consumers can expect from the bundle.

Users of the new bundle will be able to choose between ad-supported and ad-free options. While the pricing remains unclear at the moment, Warner Bros. Discovery said the bundle will be priced attractively.

The company explained that this latest partnership will drive business efficiencies while increasing customer retention.

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This post was written by Melanie Riehl

Video Transcript

While Disney and Warner Brother may normally be duking it out in the battle for viewers, the two rival companies are actually teaming up for a brand new bundle package for the streaming services for more on the deal.And what's inside is our very own, Alexandra Canal.Hey, hey, Brad.Yes, more bundles coming for the consumer Warner Brothers, Discovery and Disney announcing this new joint venture.Now, customers will be able to choose whether they want the ad supported here or the ad option, but it brings all of those three streaming services into one platform.That's Disney Plus, Hulu and Max.Now we don't know exact pricing at this point.Although management said that it will be priced very attractively for the consumer and pointed to what the current bundle is with Hulu and Disney Plus, you can get that for 999 a month for the ad supported tier or 1999 for the premium, a free version.So that is potentially where the pricing could land there.But on the earnings call, Warner Brothers, Discovery was very adamant that this is going to drive business efficiencies moving forward.And ultimately, this is a play to reduce churn our customers leaving the platform continuously.They really want to retain that customer so that they are loyal subscriber base and that they can continue that even as shows and, and, and they, they see the changing shifting of the audiences there.So, you know, we've seen bundling before.I think it's interesting now that we're seeing competitors come together before it was really more internal bundles.But now we're seeing that as customers are becoming a little bit more choosy with their plans, we need to have more of a synergy there amongst all of these streaming competitors.Is it, is it clear how many people would need to sign up for this bundle for these companies to determine it a success at the end of the day?I think that's something that investors are closely going to be watching.It's also going to be interesting when you think about exclusive content most of the time, if you say something is exclusive to Hulu Disney plus or Max that will drive subscriptions to that specific service.But if you're giving up all the goods there and bundling it together, what does that mean for your core service?So I'm curious to see if there's going to be any cannibalization when you think about customers signing up for this bundle as opposed to just being a Mac subscriber or Disney plus subscriber, but clearly uh the business, the businesses think that there are real benefits here especially when you think about a marketing perspective, all those costs, you're sort of sharing that across the board.So, something that I think we're going to continue to see more and more of the old cost synergies.Yes.Thanks so much.Appreciate it.Thanks.