Disney announced that it will increase the prices of its streaming services, Disney+ and Hulu without commercials, in an effort to boost profitability. Starting October 12, the monthly subscription price for commercial-free Disney+ will rise to $13.99, a 27% increase from its current price. However, the price for Disney+ with ads will remain unchanged at $7.99 per month. Additionally, Hulu without ads will see a 20% price hike, increasing to $17.99 per month, while the price for Hulu with ads will remain at $7.99 per month.
The decision to increase prices indicates Disney’s confidence in the value of its content library, as it positions its services against competitors like Netflix and Warner Bros. Discovery’s Max. Despite the hike, Disney’s prices are still competitive, with Netflix’s standard plan without commercials priced at $15.49 per month and Max priced at $15.99 per month.
Disney will also be introducing a new “premium duo” package, offering both Disney+ and Hulu without commercials for $19.99 per month, which is a $12 per month savings for customers. The bundle of Disney+ and Hulu with ads will continue to be priced at $9.99 per month.
In addition to these changes, Disney will be increasing the price of its bundle that includes Disney+ (no ads), Hulu (no ads), and ESPN+ (with ads) to $24.99 per month from $19.99 per month. The bundled offering with all three products and commercials will see a $2 per month increase, priced at $14.99 per month.
Despite the price hikes, Disney remains optimistic about consumer demand for its streaming services. In its fiscal third quarter, Disney’s streaming division reported a loss of $512 million. However, Disney+ managed to gain 800,000 subscribers during the period, ending the quarter with a total of 105.7 million Disney+ subscribers, excluding India’s Hotstar, and approximately 146 million subscribers worldwide.
It should be noted that the Hollywood writers and actors strikes may pose a threat to Disney’s content pipeline in the coming months. However, Disney believes that consumers will be willing to pay higher prices for its streaming services.
In response to the price increase, Disney’s Hulu + Live TV with ads will be priced at $76.99 per month, up from $69.99, while the commercial-free Hulu + Live TV option will be priced at $89.99 per month, up from $82.99.
Overall, Disney’s decision to increase prices reflects its confidence in the value of its streaming services and its pursuit of profitability in the highly competitive streaming market.