Disney has announced that subscription prices for its streaming platforms, including Disney+, Hulu, and ESPN+, will be increasing once again. The price hike, set to take effect in mid-October, will see monthly prices for both ad-supported and ad-free versions of Disney+ and its sister platforms go up by $1 to $2. This move is part of Disney’s efforts to enhance its direct-to-consumer business profitability.
The new pricing structure will see the basic and premium tiers of Disney+ priced at $9.99 and $15.99, respectively. Hulu with ads will increase to $9.99 per month, while the ad-free premium version will rise to $18.99. ESPN+ will see a $1 increase, bringing its monthly fee to $11.99. The popular “Disney bundle,” which offers access to all three platforms, will also be affected, with both the ad-supported and ad-free versions costing an additional $2 per month. The ad-supported bundle will be priced at $16.99, while the ad-free version will be $26.99.
In addition to the price increases, Disney is introducing new features to enhance the viewing experience on Disney+. One of these features is the introduction of “continuous playlists” aimed at preschool-age children. These playlists will include popular TV series and shorts such as “Sofia the First,” “The Lion Guard,” “Puppy Dog Pals,” and “Minnie’s Bow-Toons.” According to Alisa Bowen, President of Disney+, these playlists are part of Disney’s commitment to providing the best value and experience for subscribers.
Disney also plans to roll out four more curated playlists, including seasonal content, “epic stories” from franchises like Star Wars and Marvel, “nostalgic pop culture content,” and a “real life” channel featuring documentaries and biopics. These additions aim to cater to a wide range of viewer interests and provide a more engaging and personalized viewing experience.
Furthermore, premium subscribers will have access to “ABC News Live,” which will feature live newscasts, breaking news, live events, and special reports. This addition further enhances the value proposition for premium subscribers, offering them a diverse range of content beyond entertainment.
It remains to be seen how these changes will be received by customers, particularly after Disney+ experienced a loss of over 1 million global subscribers in the last quarter of 2023 following a significant price increase. However, Disney did announce its first-ever profit in its combined streaming business in its fiscal third-quarter earnings report, thanks to the success of the ESPN+ unit.
Overall, while the price increases may be met with some resistance from customers, Disney’s focus on enhancing the viewing experience with new features and content offerings demonstrates its commitment to delivering value and maintaining its position as a leading streaming service provider. These changes aim to cater to a diverse range of viewer preferences and interests, ensuring that there is something for everyone on Disney’s streaming platforms.
