In the wake of its recent earnings report, Disney has unveiled plans to adjust its streaming service prices in a strategic move aimed at boosting profitability and strengthening its competitive edge.
Starting October 12, Disney will implement a 27% price increase for its ad-free Disney+ subscription, bringing the monthly cost to $13.99. Simultaneously, the ad-supported version of Disney+ will maintain its current price of $7.99 per month. Furthermore, Disney intends to extend the availability of its ad-tier offering to specific markets in Europe and Canada from November 1.
The pricing adjustments also extend to Disney’s Hulu platform. The ad-free version of Hulu will see a 20% price hike, raising the monthly fee to $17.99. On the other hand, Hulu’s ad-supported subscription will retain its existing price of $7.99 per month.
In a comparative context, Disney’s new pricing structure positions its commercial-free Disney+ subscription at a price point almost on par with Netflix’s standard plan without commercials, priced at $15.49 per month. Similarly, Warner Bros. Discovery’s Max subscription is set at $15.99 per month.
This strategic decision reflects Disney’s confidence in the value of its content library and its ability to compete effectively with established streaming platforms. Initially launched by CEO Bob Iger in 2019, Disney+ was intentionally priced at $6.99 per month, significantly lower than Netflix’s offerings.
Despite last year’s $3 per month increase in the cost of Disney+, the service experienced minimal subscription cancellations, indicating the resilience of its user base.
Iger highlighted Disney’s deliberate push towards its ad-supported services by maintaining price consistency for those offerings. He emphasized that the advertising landscape within the streaming realm is proving to be more promising than traditional linear TV.
As part of its new pricing structure, Disney is introducing a “premium duo” package, where consumers can access both ad-free Disney+ and ad-free Hulu for $19.99 per month, a $12 monthly saving. This package will be available from September 6. The bundle of Disney+ (ad-free) and Hulu (with ads) will remain priced at $9.99 per month.
Additionally, Disney is revising the cost of its bundle featuring Disney+ (ad-free), Hulu (ad-free), and ESPN+ (with ads) to $24.99 per month, up from $19.99 per month. The bundle encompassing all three services with commercials will be priced at $14.99 per month, reflecting a $2 increase.
Disney reported a $512 million loss in its streaming division for the fiscal third quarter. During this period, Disney+ (excluding India’s Hotstar) gained 800,000 new subscribers, contributing to a total of 105.7 million Disney+ subscribers (excluding Hotstar) and approximately 146 million overall.
In line with these price adjustments, Disney is also increasing the fees for its Hulu + Live TV offerings. The version with ads will now cost $76.99 per month, up from $69.99, while the commercial-free variant will be priced at $89.99 per month, an increase from $82.99.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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