Walt Disney Co is raising prices on several of its streaming subscriptions, with users being notified as early as Sept 23, according to people familiar with the matter.
The price of the flagship Disney+ streaming service, without advertisements, will rise 13 per cent or US$2.50 (S$3.19) to US$21.49 (S$27.50) a month, said the people, who asked not to be identified as the information has not been made public.
The increase will bring the premium Disney+ product more in line with a similar plan sold by Netflix Inc, which charges US$26.99 a month for an ad-free service with 4K resolution and access on multiple devices.
The price of the Hulu streaming subscription without advertising will increase by the same amount, while the price of a bundled ad-free subscription to both Disney+ and Hulu will increase by US$2 to US$21.99, or just 50 US cents more than subscribing to each service individually.
Disney+ and Hulu with advertising will cost US$12.49 a month on a standalone basis, an increase of 50 US cents. The monthly cost of subscribing to an ad-supported Disney+ and Hulu bundle will be unchanged at US$12.99.
Disney, like other operators, has been pricing its bundled plans attractively because consumers are less likely to cancel when they get access to multiple services.
Entertainment giants including Disney, Netflix, Apple Inc, Comcast Corp and Paramount Skydance Corp in the US are all hiking the prices of streaming subscriptions in a bid to boost profitability.
In August, Disney reported that operating income from the entertainment division that houses the company’s film studio, non-sports TV networks and Disney+ soared 64 per cent in its third quarter from the same period a year ago, driven by increased subscriptions and a double-digit profit margin in the online video business.
Earlier in September, Disney named Adam Smith as sole chair of Disney’s direct-to-consumer unit, which includes the company’s entertainment streaming services.
Management has begun an overhaul of operations that is paying dividends in terms of increased time spent by users on Disney+.
Disney also appointed Karandeep Anand to the newly created role of chief technology officer, reporting to chief executive officer Josh D’Amaro, who has made modernising the company’s consumer interactions a priority.
On a conference call with investors in August, D’Amaro said that Disney+ will evolve into a home for merchandise, games and experiences alongside films and TV shows, starting in the spring of 2027. BLOOMBERG
