Disney is set to increase prices on its streaming platforms, including Disney+, Hulu, and ESPN+. The price hikes will go into effect in mid-October and will range from $1 to $6 per month, depending on the plan. The move comes as Disney looks to encourage customers to opt for bundled services, offering more value for their money.
Currently, Disney offers a bundle that includes Hulu and Disney+, or the option to add ESPN+ as well. This bundle will also see a price increase, with the Hulu and Disney+ bundle going up $1 to $10.99 per month. However, the bundle without ads will remain at the current rate of $19.99 per month.
In addition to its own bundled services, Disney has also partnered with Warner Bros. Discovery to offer a bundle that includes Disney+, Hulu, and Max. This bundle was announced in July and will be available for $16.99 with ads or $29.99 commercial-free, providing a 38% savings compared to purchasing the services separately.
To further entice subscribers, Disney will be adding ABC News Live and a playlist featuring preschool content to its streaming platforms. These additions will be available to all subscribers starting September 4. Additionally, Disney plans to introduce four more curated playlists for premium subscribers.
The price increases and bundled offerings are part of Disney’s strategy to drive growth and profitability in the streaming space. By raising prices and providing additional content and value, Disney aims to attract and retain subscribers. The company’s focus on bundled services allows customers to access multiple platforms at a discounted rate, making it a more appealing option for consumers.
It will be interesting to see how these price hikes and new offerings impact Disney’s fiscal third-quarter earnings, which are set to be reported on Wednesday. The streaming industry continues to be highly competitive, and companies like Disney are constantly adapting their strategies to stay ahead in the market. As streaming platforms become the primary way consumers access entertainment, pricing and content offerings will play a crucial role in attracting and retaining subscribers.
