Traditional media companies have spent much of 2024 trying to cut the costs associated with their subscription streaming services in an effort to boost profits. Now it's Disney's turn. According to a report from What's on Disney+, Disney has decided to shut down several of its on-demand streaming apps for mobile devices and connected TVs, including DisneyNOW, FXNow, and ABC.
Key details:
- Disney has warned customers that it will shut down five of its on-demand apps in September.
- Viewers can continue to access on-demand content over the web using their TV Everywhere credentials.
- Warner Bros., Discovery and Paramount have also recently implemented similar cost-cutting measures.
Disney warned customers over the weekend that it would shut down five of its on-demand apps: ABC, DisneyNOW, Freeform, FXNow and Nat Geo TV. After Sept. 23, the apps will no longer be available on smart TVs or connected devices like Roku or Amazon Fire TV branded streaming players, and they will also be unavailable to mobile users.
The apps' websites are getting a reprieve for now: Cable TV customers with TV Everywhere credentials can still access the on-demand content they have on the apps via the web after the apps are shut down, and they can also find many TV shows and other titles available on Disney+ and Hulu.
“While the DisneyNOW app is being retired, your favorite shows, shorts, mini-episodes, games, and live TV services will continue to be available,” Disney said in an alert to customers. “After September 23, 2024, the DisneyNOW app will no longer be available on mobile devices and connected TVs. Don't worry! There are still many ways to watch all of DisneyNOW on-air, online, and on-demand.”
As mentioned above, Disney is just the latest media company to reduce the number of video apps it operates: Warner Bros. Discovery recently announced that it would shut down its kids' streaming service Boomerang on September 30 and move much of its animated content to its flagship streaming service, Max.
Paramount did the same over the summer, removing video archives from Comedy Central, MTV and other cable channel sites in June, and directing customers who visited those sites to sign up for a Paramount+ subscription to watch the content.
All of these efforts are just one piece of the profitability puzzle for traditional media companies: the continued decline in revenue from cable channels makes it urgent to generate streaming revenue, and the more ways companies offer video content for free, the less incentive customers have to sign up for paid streaming services.
The closure of these ancillary on-demand apps will also allow these companies to cut some costs. And as subscription services are increasingly bundled with cable packages, the websites they maintain for customers who log into TV Everywhere will likely be shut down as well. It's just another sign of how the TV industry is evolving as channel owners seek the next step for fading linear channels.