It seems to me Disney+ is desperate to add new customers to their streaming service and with this deal I think if you're a newbie to Disney+ I can see this deal working out. But why they have Max with Hulu is beyond me because when you look at it Max simply has retro movies like HBO does
There are people who like retro/old movies. I was one of the last people who still had a DVD Netflix subscription because it gave me the ability to legally watch older movies that were not on streaming. The fact that HBO had older/classic movies was part of the reason I subscribed to Max. Also Max has just about every Discovery Channel show on it as well, so it is more than just older movies.
People associate Disney and Disney+ with kids and there is a vast majority of content on Disney+ that is child/family friendly. However, households with children also have adults. Bundling Max and Hulu makes it more attractive to adults. There's something for everyone. When the kids go off to bed or are out of the house for another reason (sleepover, sleep away camp, school trip, or something else) there is more grown-up fare for the adults to watch.
it shocks me that Max offers the new movies such as Barbie first before any other movie streaming service does
Barbie was a Warner Brothers film. When films are released on streaming, they usually go the streaming service connected to the studio. Warner Brothers is part of the larger company Warner Brothers Discovery and the streaming service connected with them is Max. At this point, most major movie studios are connected to a streaming service. A Universal film will go to Peacock first before other streaming services have it.
I think Disney bought Max is so they can add Disney movies to them. Now I found out why Disney+ has Who Wants To Be A Millionaire with Jimmy Kimmel and Press Your Luck is because I think the ABC App will be gone and all the ABC shows will be added to Disney+.
As others have said, Disney did not buy Max. Disney and Warner Brothers Discovery entered into a partnership that they hope will benefit everyone involved. Disney+ has ABC shows because Disney owns ABC. ABC shows are on Hulu, because Hulu started out as joint venture of multiple networks. It was originally a way for people to legally watch broadcast shows online after they aired on TV. When Disney bought Fox, they ended up with Fox's share of Hulu, in addition to the ABC share Disney already owned.
Disney ended up buying out the other co-owners of Hulu, so now Disney owns Hulu outright. Hulu no longer has co-owners the way it once did. As Disney starts to put more Hulu programming on Disney+, that means more ABC programming will be available on Disney+.
You probably right about the end of the ABC app being near. Disney would want to drive traffic to Hulu and/or Disney+.