In This Article:
Walt Disney Co. (NYSE:DIS) is rolling out a new wave of subscriber perks across its streaming platformsand it's not just about a better deal, it's about locking you in. Starting this week, Disney+ users logging in via the website can snag everything from $10 credits and collectible pins to discounts on theme parks and in-game bonuses. There are even sweepstakes for Disney cruises and premiere access to films like Freakier Friday. Hulu's getting in on the action tooits perks program kicks off June 2 with chances to win tickets to Jimmy Kimmel Live!, Comic-Con, and Lollapalooza. If you subscribe to both, you'll get access to both programs.
This move isn't about adding new users at all costs anymore. Disney has been pivoting toward profitabilityand with 126 million Disney+ subscribers and 54.7 million on Hulu, the focus has shifted to keeping them around. The streaming division delivered $629 million in operating income in the first half of fiscal 2025, and that's the real win. The idea: the longer you stay, the more valuable you becomeespecially to advertisers. And with churn at just 3% in April, well below the industry average, the early signs are encouraging.
Disney's betting that perksnot just contentcould be the next moat in streaming. Executives say the new offers are a thank-you to fans, but this is also a calculated strategy to drive stickiness and reduce subscriber fatigue. Perks will hit the U.S. first, with international rollouts later this year. Whether it's a cruise, a collectible pin, or just not having to re-enter your login for the fifth time this week, Disney wants to give you one less reason to cancel.
This article first appeared on GuruFocus.