The battle for streaming supremacy has never been more intense, and Hulu, backed by Disney, is making strategic moves that are shaking up the industry. One of the most surprising developments is Hulu’s bundle deal, which includes Disney+ and Max, outperforming Netflix in terms of subscriber retention rates. Could this mean that Netflix’s long-standing dominance may not be as secure as it once was?
Retention rate is the percentage of subscribers who continue paying for a service after signing up, and it’s an important metric for streaming services. A recent report revealed that Hulu’s bundle with Disney+ and Max has an 80% retention rate after three months, surpassing Netflix’s 74% in the same period.
A higher retention rate is a significant advantage in the current industry, where many users engage in “churn and return” behavior, which sees new subscribers cancel their subscription after a short time, only to sign back up when the platform adds more content they want to see.
With Netflix raising prices and losing some of its must-watch exclusives to competitors, the Hulu bundle appears to be a better deal for many consumers. It can also be a sign that subscribers are finding more content that they enjoy with the bundle, keeping them signed up.
Why is the Hulu bundle so successful?
More content for a better price
The Hulu bundle offers access to three major streaming services—Hulu, Disney+, and Max—at a starting price of $16.99 per month with ads and $29.99 without ads. This means subscribers get access to a vast library of content, including Disney’s family-friendly titles, Hulu’s original series, and Max’s premium HBO content, all for a price that rivals a single Netflix subscription.
Better bundling strategy
Instead of competing separately, Disney, Hulu, and Max joined forces to create a super-bundle, similar to how traditional cable packages worked. This approach reduces churn because subscribers feel they’re getting a better deal when multiple services are in one package.
Is Netflix in trouble?
While Netflix remains the largest streaming platform with over 301 million subscribers globally, its lower retention rate signals that its dominance could be at risk. Competitors like Hulu, Disney+, and Max have found a way to lock in subscribers by offering more for less, a strategy that Netflix has not yet fully embraced.
That said, Netflix is still the king of streaming, has a strong global presence, and has exclusive original content that includes hugely popular shows like Stranger Things, The Witcher, and Squid Game. However, if retention rates continue to favor Hulu’s bundle, Netflix may need to rethink its pricing strategy or explore bundling options with other services.
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