Disney raises prices for streaming services by as much as 27%
WALT Disney is raising the prices of its streaming services, including a 27 per cent increase for the advertising-free version of the flagship Disney+.
Starting Oct 12, the ad-free version of Disney+ will cost US$14 a month, up from US$11 currently, the Burbank, California-based company said on Wednesday (Aug 9). The ad-free version of Hulu is going up by 20 per cent to US$18.
It’s the second price increase for Disney+ in less than a year – and underscores the company’s drive to make its streaming business profitable by September 2024. The lowest-priced plans, Disney+ and Hulu with ads, will remain at US$8 a month.
Since the launch of Disney+ in November 2019, the world’s largest entertainment company had sought to attract streaming subscribers with unsustainably low prices.
Now management is raising prices, seeking to narrow its losses and stay competitive without alienating customers. Rival Netflix charges US$15.50 a month for its ad-free service, while Warner Bros Discovery prices the Max service at US$16.
Earlier on Wednesday, Disney reported its loss from streaming narrowed by half to US$512 million in the fiscal third quarter, far less than what management had forecast three months ago.
The company finished the period with 105.7 million core customers of Disney+, up from 104.9 million three months earlier. The count excludes the Hotstar service in Asia.
As part of the changes, Disney introduced an ad-free version of Disney-Hulu bundle priced at US$20 a month. An ad-free version of a bundle with Disney+, Hulu and ESPN+is increasing to US$25 monthly from US$20, while a subscription to that package with ads will rise to US$15 monthly from US$13.
Disney is also introducing an ad-supported version of its Disney+ service in several European markets and in Canada in November. BLOOMBERG
Share with us your feedback on BT's products and services
