Disney is making moves to increase prices on its streaming platforms such as Disney+, Hulu, and ESPN+. The price hikes are set to take effect in mid-October, with most plans seeing an increase of $1 to $2 per month. For instance, the basic and premium plans for Disney+ will now be priced at $9.99 and $15.99, respectively. Hulu with ads will see a monthly cost of $9.99, while the ad-free version will cost $18.99 per month. ESPN+ will also be affected by the price changes, with a monthly fee of $11.99.
Disney’s strategy behind the price increases is to push customers towards bundling their services in order to get more value for their money. The company has been offering bundles of its own services for some time now, such as the combination of Hulu and Disney+, or the trio of Hulu, Disney+, and ESPN+. Even the existing bundle of Disney+ and Hulu will see a price hike, with the ad-supported version going up to $10.99 per month. However, the ad-free bundle will remain at its current rate of $19.99 per month. Additionally, Disney has partnered with Warner Bros. Discovery to offer a bundle that includes Disney+, Hulu, and Max, at a reduced price compared to purchasing the services separately.
In an effort to further entice subscribers, Disney is also adding new content options to its streaming platforms. ABC News Live and a playlist featuring preschool content will be available to all subscribers starting September 4. Moreover, the company plans to introduce four more curated playlists exclusively for premium subscribers. This move is part of Disney’s ongoing effort to enhance the value and experience for its subscribers each time they access Disney+.
Overall, these price increases and new content offerings reflect Disney’s commitment to providing a diverse range of options for its streaming platform subscribers. The company aims to strike a balance between increasing revenue and delivering quality content to its viewers. As Disney prepares to report its fiscal third-quarter earnings, these changes are likely to have a significant impact on the company’s bottom line.