Disney has announced that it will be increasing the prices of its streaming platforms starting in mid-October. The new pricing model will see most plans for Disney+, Hulu, and ESPN+ go up by $1 to $2 per month. The most significant increase will be for the most expensive plans for Hulu, including live TV, which will now cost $6 more per month. The basic and premium plans for Disney+ will be priced at $9.99 and $15.99, respectively. Additionally, Hulu with ads will now cost $9.99 per month, while the ad-free option will be priced at $18.99. ESPN+ with ads will see a price increase to $11.99 per month.
Disney’s decision to raise prices comes as the company aims to direct its customers towards bundle offers, providing a more comprehensive entertainment experience for a better value. Customers can choose from a variety of bundles, including combinations of Hulu and Disney+, or all three services – Hulu, Disney+, and ESPN+. Moreover, the existing bundle of Disney+ and Hulu with ads will also be subject to a price hike this fall, up $1 to $10.99 per month. However, the bundle without ads will remain at the current rate of $19.99 per month. Disney has also collaborated with Warner Bros. Discovery to introduce another bundle, which will feature Disney+, Hulu, and Max at $16.99 with ads, and $29.99 for a commercial-free experience, offering a 38% discount compared to purchasing the services individually.
In addition to the price increases, Disney is looking to enhance the subscriber experience by introducing new content offerings. Subscribers will now have access to ABC News Live and a playlist dedicated to preschool content, beginning September 4th. Furthermore, Disney plans to introduce four more curated playlists exclusively for premium subscribers. Alisa Bowen, the president of the streaming platform, stated that these playlists are part of Disney’s ongoing efforts to provide the best value and experience to its subscribers every time they log on to Disney+.
Disney’s Financial Outlook
Disney’s move to increase prices on its streaming platforms coincides with the company’s upcoming fiscal third-quarter earnings report, scheduled to be released before the bell on Wednesday. The company’s decision to adjust pricing and introduce new content offerings reflects Disney’s commitment to staying competitive in the ever-evolving streaming market while continuing to provide premium entertainment options to its subscribers.