Disney has recently announced that it will be raising prices on its streaming platforms starting in mid-October. This decision will result in most plans for Disney+, Hulu, and ESPN+ costing $1 to $2 more per month. The most expensive plans for Hulu, especially those including live TV, will see a significant increase of $6 per month. Disney+ basic and premium subscriptions will be priced at $9.99 and $15.99 per month, respectively. Additionally, Hulu with advertisements will now cost $9.99 monthly, while the ad-free version will be priced at $18.99 per month. ESPN+, which features ads, will also experience a price hike to $11.99 per month.
These price hikes are a strategic move by Disney to encourage customers to opt for bundles in order to maximize the value of their subscriptions. For some time now, Disney has been offering combinations of its streaming services such as Hulu and Disney+, or a bundled package with both streaming services along with ESPN+. In addition to its own bundle offerings, Disney has also partnered with Warner Bros. Discovery to offer another bundle that includes Disney+, Hulu, and Max. This bundle was announced to be available for $16.99 with ads and $29.99 for a commercial-free experience, providing subscribers with a 38% savings compared to purchasing the services separately.
In addition to the price adjustments, Disney is looking to attract and retain subscribers by offering new content and features. Starting September 4, all subscribers will have access to ABC News Live and a playlist featuring preschool content. Premium subscribers will also have access to four curated playlists to enhance their viewing experience. Alisa Bowen, President of the streaming platform, emphasized that these new features, such as playlists, are part of Disney’s ongoing efforts to deliver the best value and experience to its subscribers every time they log into Disney+.
As Disney implements these changes to its streaming services and pricing structure, the company is set to release its fiscal third-quarter earnings report. This announcement will provide further insights into the financial impact of these strategic decisions on Disney’s streaming business and overall profitability. It remains to be seen how these price adjustments will affect subscriber growth and retention rates for Disney’s streaming platforms in the coming months.