Walt Disney’s Disney+ saw a sink in sales as the earning reports of the third quarter showed that the company struggled in revenue. Hence, the company decided to hike the prices of Disney+ streaming services.
From 12th October 2023, the ad-free subscription to Disney+ will cost $13.99 per month. This is an increase of $3. On December 2023, the company increased its prices from $7.99 per month to $10.99 per month. Hence, Disney raised its ad-free subscription prices by $3 twice within one year.
Apart from that, the prices of Hulu’s services will also go up in October, where Disney owns a majority stake. The ad-free offering of Hulu will rise by a further $3, as the new price tag will be $17.99 per month. Moreover, the new ad-free package of both Disney and Hulu will cost $19.99 from October 2023. However, the ad-supported subscription tier remains at $7.99 per month.
According to reports by CNN Business,
“Streaming subscribers in the US and Canada are pulling back, as well. Disney reported a 1% decline in domestic subscribers for the second quarter in a row. International subscribers grew 2% in the quarter.”
Disney announces price hike after its unprofitable third-quarter revenue report. However, in the third quarter itself, Disney narrowed down on the revenue front. According to the CEO of Disney, Bob Iger, the company made these decisions by keeping in mind the ultimate goal of pushing more subscribers to the ad-supported option of Disney, which costs $7.99 per month.
In addition to that, the CEO also talked about the problems related to password sharing, as they will get to the issue a year later in 2024.
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