In a major move that could have far-reaching consequences in the OTT streaming market, Disney has announced that two of its popular apps, Disney+ and Hulu, will merge into one single entity later this year. In a statement this week, the company's CEO, Bob Iger, said the "one app experience" will be rolled out in the U.S. later this year, with Hulu content incorporated right into Disney+. However, despite the merger, the standalone Hulu app will remain operational, at least for the time being. ESPN+ will continue to be offered as a separate app, the company said.

While the merger may be good news for folks tired of juggling too many streaming apps, Disney has some bad news for subscribers. Iger said (via CNBC) that Disney+ would raise the price of its ad-free tier (currently $10.99 per month) but did not confirm how much more the service would cost. He did not say anything specific about the ad-supported tier that currently costs $7.99 per month.

Either way, it would be yet another blow to consumers who are already reeling under the recent hikes in subscription charges for Netflix, HBO Max, Apple TV+, ESPN+, and other streaming platforms. Disney+, Hulu, and ESPN+ also saw price hikes last year, but the company does offer a bundle that includes all three services at a cheaper price.

The plan to integrate Hulu content in Disney+ suggests that Disney wants to retain its control of Hulu, notwithstanding Comcast's 33 percent stake in the platform. Iger also said that the unified experience will offer "general entertainment content" on Disney+ but refused to make any predictions about the future of Hulu. According to him, Disney has had 'constructive' talks with Comcast about the future of the streaming platform, but there's no more information on that front for now.

Meanwhile, Disney also reported a massive $659 million loss during the second quarter of FY 2023, although it is still 26 percent lower than the $887 million it lost during the same quarter last year. The company lost 4 million subscribers during the last quarter after shedding 2.4 million users in the previous three months, mostly due to problems in India, where people have been canceling subscriptions to its subsidiary Disney+ Hotstar, which lost the streaming rights to IPL cricket matches.