Disney hikes price for Disney+, Hulu and ESPN+ subscription services
On Tuesday, the media company announced price hikes across the board for Disney+, Hulu, and ESPN+. It comes in a deeply uncertain environment for media companies, which face rapidly changing consumer behavior, rising costs of doing business, a revitalized labor movement in Hollywood and harsh regulators that are skeptical of mergers.
Netflix remains the runaway leader in the streaming business – and the only consistently profitable competitor in the segment. Disney is the closest to building a semblance of a Netflix rival, barely squeezing out a profit in parts of its streaming business in the first quarter.
Beginning on October 17, US subscribers to Disney+ will have to pay $2 more per month for its plans: Disney+ with ads will cost $9.99, up from $7.99. Its ad-free plan will cost $15.99, up from $13.99.
Hulu’s ad-supported plan will also increase to $9.99 per month, from $7.99, and its ad-free plan will rise by one dollar to $18.99. ESPN+, the company’s sports streaming service, will also rise by $1 to $11.99 per month.
The company said it would also add new features to Disney+, along with the price hikes: Ahead of the 2024 Presidential Election, all Disney+ subscribers will have access to ABC News Live and a continuous playlist of content aimed at preschool-aged children.
The company also hiked the price of its subscription services by several dollars last year in an effort to make its streaming services profitable. Disney has steadily raised the prices of its streaming offerings since its flagship service, Disney+, launched nearly five years ago with a relatively low monthly subscription fee of $6.99.
Disney’s direct-to-consumer business, which includes its streaming services Disney+ and Hulu, long a money-losing endeavor for the company, eked out its first profit in May. The company reports its third-quarter results on Wednesday.
The media company's decision to increase prices for Disney+, Hulu, and ESPN+ is a response to rising costs in the business environment. In an attempt to bolster its streaming business, Disney also plans to introduce new features, such as providing ABC News Live and preschool-focused content, to its Disney+ subscribers.
