Los Angeles, Aug. 8 -- Disney is likely to shut down the Hulu standalone app in 2026.

As per Variety, the streaming giant will merge Hulu into Disney+.

Disney chief Bob Iger touted a number of benefits through the move, including increased engagement and lower churn rates. But a major boon for Disney should come on operating expenses.

In fiscal 2025, Hulu will have programming costs of USD 4.1 billion and non-programming expenses of USD 2.9 billion -- increasing to USD 4.4 billion in content costs and USD 3.3 billion in non-content costs by fiscal 2027, according to projections by MoffettNathanson analyst Robert Fishman.

Disney has "an opportunity to drive additional cost efficiencies from the elimination of duplicative technology and...