Disney Raises Prices for Ad-Free Streaming Services
According to information provided by the business during today’s earnings call (via CNBC), Disney intends to implement a pricing increase for its ad-free Disney+ and Hulu streaming services beginning on October 12. The package that removes advertisements from Disney+ will cost $13.99 per month. In contrast, the option that removes advertisements from Hulu will cost $17.99 per month.
Ad-Free Streaming Price Increase
At this time, the cost of ad-free Disney+ is $10.99 per month, while the cost of ad-free Hulu is $14.99 per month. Disney charged $6.99 for a subscription to Disney+ when it first started three years ago, meaning that the price for access free of advertisements has more than doubled.
Disney intends to provide an ad-free bundle of Hulu and Disney+ for the price of $19.99 a month, which is a discount of $12 compared to the prices of the individual services. This package’s pricing includes Disney+, Hulu, and ESPN at the moment; however, it will increase to $24.99 per month. There is currently no release date for the Hulu and Disney+ package deal. Nevertheless, the new prices will go into effect in October, when the launch will occur.
Ending Password Sharing
In addition to proposing to increase the prices of its streaming plans, Disney is also considering ending the practice of sharing passwords, following in the footsteps of Netflix. The Chief Executive Officer of Disney, Bob Iger, recently stated that the company will “roll out tactics” to end the practice of exchanging passwords beginning in 2024.
Positive Financial Results
After posting a loss of $512 million in the third fiscal quarter of 2023, Disney’s streaming division posted a better result than the $1.1 billion loss it posted in the same quarter the previous year. This result prompted the company to crack down on the sharing of passwords and boost prices. Disney has more than 105 million users to its streaming service Disney+ and added 800,000 customers during the quarter.
