Once again, The Walt Disney Company is increasing the prices for its Disney+ streaming service.
Starting October 12th, the ad-free subscription of the streaming service will be priced at $13.99 per month, marking a $3 monthly increment. This also marks the second instance within a year that Disney has elevated the cost of its streaming service. In December, the company previously raised the price of the ad-free tier from $7.99 to $10.99.
Disney, holding a significant share in Hulu, is also planning a price hike for the latter. The ad-free option for Hulu will experience a $3 increase, reaching $17.99. Additionally, a novel ad-free bundle combining Disney+ and Hulu will be available at $19.99. Nevertheless, the ad-supported subscription tier has been excluded from the recent wave of price increases. Disney+ will maintain its fee of $7.99 per month for this particular option, as confirmed by the company. During Disney’s fiscal third-quarter earnings call, CEO Bob Iger noted that these pricing choices were formulated to encourage more Disney+ subscribers to opt for the ad-supported offering.
“The advertising marketplace for streaming is picking up. It’s more healthy than the advertising marketplace for linear television,” Iger said.
The price increase coincides with Disney’s revelation that its streaming operations continue to operate at a loss, although there has been a reduction in revenue deficit during the third quarter. Additionally, there has been a reduction in streaming subscribers in the United States and Canada. Disney documented a consecutive 1% decrease in domestic subscribers over two quarters. Conversely, there was a 2% increase in international subscribers during the same quarter.
