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Here's Why Disney's New Streaming Bundle Makes Sense


On Tuesday afternoon, Walt Disney (NYSE: DIS) dropped some surprising news alongside its fiscal third-quarter results. It will offer its upcoming Disney+ streaming service as part of a bundle with Hulu and ESPN+.

It's a smart move. Pricing the bundle aggressively, the value proposition can help Disney attract subscribers to its streaming services. But there's another reason investors should like this bundle: It's a workaround to bring ads to Disney+ subscribers, boosting the service's monetization.

Image source: Walt Disney.

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