The Disney+, Hulu and Max streaming bundle seems to be a hit so far

Disney+ just posted its most monthly subscriptions in the US since last November, according to new data from research firm Antenna shared with Business Insider on Monday afternoon. Hulu and Max each had their third-strongest months during that period, Antenna found. The services saw between 158,000 and 277,000 sign-ups in the US in August, according to the data.

Other major streaming services haven’t enjoyed the same boom since late summer. In fact, the number of Netflix subscribers in July and August in the US was the lowest in 12 months, and the same was true for Paramount+ in August. Peacock still generated subscribers at an above-average rate, largely due to its exclusive streaming rights to the US Olympics.

All of which suggests the new supercharged package has generated gains for WBD and Disney streamers at the expense of rival services.

Disney+ accounted for 13% of US streaming sign-ups in August, which was its highest rate in 12 months. Hulu’s 16 percent figure also matched its best rate since last fall, while Max pulled in 14 percent of the US streamer’s signups — its second-best clip of the past year.

WBD and Disney did not respond to requests for comment.

Don’t be fooled by increasing loss rates

The logic behind the streaming partnership between WBD and Disney is simple: by combining Max with the core of the popular Disney package, the two companies can attract new customers, save on marketing costs and reduce the frequency that affects each of their businesses.

If the Max-Hulu-Disney+ bundle works as designed, subscribers will stick around year-round instead of canceling when the new season of their favorite shows ends, and churn rates should drop.

That hasn’t happened so far, although there may be a reason for that.

Disney+ had a 3.9% churn rate in August, according to Antenna, which is well below the weighted industry average of 5.2% but in line with the spring.

In August, Hulu’s cancellation rate rose to its highest level since January, and Max’s abandonment rate rose to its highest level since November. Such changes could always be seasonal patterns, although a closer look suggests there is another explanation.

Taken in the context of the other Antenna data, it appears that some Hulu and Max customers are canceling their subscriptions so that they can subscribe to the Max-Hulu-Disney+ package without paying twice. This would explain why the number of subscribers to all three services increased in August, despite what initially appears to be discouraging churn data.

And while WBD and Disney would prefer their customers pay full price for their streamers, going bundled might be better in the long run. Average revenue per subscriber may be affected, but incoming revenue should be more reliable.

The Max-Hulu-Disney+ bundle is one of several streaming bundles the media giants have come up with. Comcast bundled Peacock with fellow streamers Netflix and Apple TV+ for a cheaper price, and Disney has long offered its own Disney+ and Hulu bundles and bundles with sports streamer ESPN+.

Streaming packages aren’t going anywhere — especially if they’re as successful as WBD and Disney seem to be so far.