The Disney+ subscription will have a price increase, the company announced after its fiscal third quarter webcast. No, this isn’t a repost from last year; the US entertainment conglomerate is indeed raising its prices for the second time in the last two years.
For now, only the US market will be affected, with ad-free tiers receiving the boost from 12 October. Meanwhile, the ad-supported option will expand beyond the borders of the United States and reach Canada and select markets in Europe starting November 1.
Here are all the changes:
| Level | After October 12, 2023 | Price since then December 2022 |
Price in 2021 |
| Disney+ (ad-free) | $13.99 | $10.99 | $7.99 |
| Hulu (ad-free) | $17.99 | $14.99 | $12.99 |
| ESPN+ (with ads) | $10.99 | $9.99 | $6.99 |
| Disney+, Hulu, ESPN+ bundle (with ads). | $14.99 | $12.99 | N/A |
| Disney+ package (ad-free), Hulu (ad-free), ESPN (ad-free). | $24.99 | $19.99 | N/A |
Disney believes its content can compete with Netflix, the leader in the world of streaming. Last year’s price hike saw minimal write-offs, prompting the company to further raise costs, Bob Iger said in his quarterly earnings call. The reason the ad-supported levels have remained intact is that Disney encourages users to choose them.
Iger stated that “the advertising landscape for streaming is healthier than linear TV”. The overall subscriber base dropped from 46.3 million to 46.0 million in the recent quarter, but since the ad tier was introduced, 3.3 million subscribers have opted into it; they were 40% of all new Disney+ subscribers in North America.
The streaming division lost $512 million in its fiscal quarter. The total number of subscribers increased by 800,000, but the company ruled out the Disney+ HotStar situation in India, rising from 52.9 million to 40.4 million after losing the rights to stream Indian Premier League (IPL) cricket tournament ).
Iger also addressed the problem of password sharing, a strategy that has helped Netflix generate millions of new subscribers. It will be addressed next calendar year and the executive team sees the move as a strategic opportunity to grow the business.
Although the company reported lower-than-expected revenue ($22.3 billion), revenue from theme parks increased 13%, especially after Shanghai Disney Resort finally opened full-time after lengthy closures related to COVID-19. The Disney CEO has revealed that he is “personally committed” to finding a solution to the ongoing strike of writers and actors in Hollywood, which is affecting Disney’s Pictures business.
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