Disney has announced that it will raise the price of Disney Plus to $10.99 per month, from its current price of $7.99 per month, starting December 8 in the US. The move comes as the company looks to restructure its pricing options, which will soon include an ad-supported $7.99 per month tier.
Disney is also raising the price of its Hulu subscription. The ad-free tier will go from $12.99 per month to $14.99, while the ad-supported version will cost $7.99 per month, up from $6.99. The new price will come into effect on October 10. A price increase for unbundled streaming of ESPN Plus was announced in July, bringing the monthly price from $6.99 to $9.99 per month.
Updated prices on Disney Plus, Hulu and ESPN Plus. Image: Disney
Price increases also affect bundled plans. Users with an ad-free Disney Plus subscription along with an ad-supported plan for Hulu and ESPN Plus will jump from $13.99 to $14.99 per month. Disney is also introducing a package that includes Disney Plus and Hulu with ads for $9.99 a month. Meanwhile, Disney Plus, Hulu and ESPN Plus with advertising will cost $19.99 per month.
Disney has also adjusted the price of its Hulu streaming TV packages. Hulu’s live TV package with Disney Plus, Hulu and ESPN Plus plans with advertising will cost $69.99 per month. The live TV package with ad-free Disney Plus, as well as the ad-supported Hulu and ESPN Plus plans, will cost $74.99. To get an ad-free streaming TV plan on Disney Plus or Hulu and ESPN Plus with advertising, you’ll need to pay $82.99 per month.
Last quarter, Disney reported that it added 8 million new subscribers to Disney Plus at the same time that Netflix announced a decline in subscribers for the first time in a decade. Now, Disney CEO Bob Chapek says it added 14.4 million customers to Disney Plus in the third quarter to reach a total of 152 million and 221 million across all its services; however, at the same time, its direct-to-consumer division, which includes streaming units, lost more money than in previous years. According to Disney, increased production and programming costs for Disney Plus and higher sports programming costs on ESPN Plus contributed to the losses.
Disney:
Direct-to-consumer revenue for the quarter rose 19% to $5.1 billion, and operating losses widened from $0.8 billion to $1.1 billion. The increase in operating loss was due to a higher loss at Disney+, lower operating income at Hulu and, to a lesser extent, a higher loss at ESPN+.
During an earnings call, the company lowered its subscriber forecast for 2024. It now expects Disney Plus to have 215 million to 245 million subscribers, down from its previous prediction of 230 million to 260 million.
“We are confident that Disney Plus will achieve profitability in fiscal year 2024,” Christine McCarthy, Disney’s chief financial officer, said on the call.
When asked about sports betting, something Chapek has hinted at in the past, Chapek said the company “has been in talks with several different platforms” to add the functionality and hopes to “have something to announce in the future in terms”. of an association”.
Correction August 10 5:40 PM ET: An earlier version of the article said Disney Plus, Hulu and ESPN Plus without ads will cost $19.99 a month, when ESPN Plus will have ads in that package. We regret the error.