Disney has recently announced a price hike for its streaming services, including Disney+ and Hulu. The obvious strategy to accelerate profitability and compete with other major players in the streaming industry, Disney Hulu’s price hike will be effective starting from October 12. The ad-free subscription fee for Disney+ will cost $13.99 per month, which is a 27% increase from its usual. And the ad-supported plan will remain at $7.99 per month.

Disney+ Price Increase: Disney’s Streaming Price Strategy

Disney+ has experienced significant success since its launch in 2019. With a focus on family-friendly content, the streaming service quickly gained a large subscriber base by offering its services at a low price of $6.99 per month. However, with the recent price increase, Disney is signaling its confidence in the strength of its content library. The new price of $13.99 per month puts Disney+ on par with ad-free plans from competitors such as Netflix and Warner Bros. Discovery’s Max.

Disney Hulu Price Hike

(Image Courtesy – Disney)

Disney CEO Bob Iger acknowledged that increasing the price of Disney+ last year by $3 per month did not result in significant cancellations. This encouraged the company to pursue further price adjustments to align with the market value of its streaming services. By keeping the prices of its ad-supported plans the same, Disney aims to steer users towards those offerings. Iger believes that the advertising landscape in the streaming industry is healthier than traditional linear TV.

Hulu Subscription Prices Hike

In addition to Disney+, Hulu is also undergoing a price hike. The ad-free plan will now cost $17.99 per month, a 20% increase. On the other hand, the ad-supported plan will retain its price of $7.99 per month. Hulu, which offers a wide range of TV shows and movies, has become a popular streaming service among subscribers looking for a variety of content options.

Disney is expanding the availability of its ad-supported services by introducing the ad-tier offering in select markets in Europe and Canada from November 1. This move allows Disney to cater to a wider audience and potentially increase its subscriber base. During Disney’s recent earnings call, Bob Iger announced that the company has gained 3.3 million subscribers for its U.S. advertising-supported service since its launch in December. Approximately 40% of new Disney+ subscribers have opted for the ad-supported tier.

Competition in the Streaming Service Industry

The decision to raise Disney’s ad-free subscription fee and Hulu’s price hike, reflects Disney’s confidence in the content library it offers. By positioning itself at a similar price point to other major streaming services, Disney is signaling that it can compete with the likes of Netflix and Warner Bros. Discovery’s Max. However, it remains to be seen how subscribers will respond to the price increase and whether Disney’s strategy will pay off in the long run.

Disney’s decision to increase the prices of its streaming services, including Disney+ and Hulu, is aimed at accelerating profitability and positioning itself competitively in the streaming industry. 

The expansion of ad-supported services and the retention of prices for those offerings further demonstrate Disney’s strategy to steer users towards its ad-supported plans. As the streaming landscape continues to evolve, it will be interesting to see how subscribers respond to these price adjustments and whether Disney’s content offerings justify the increased subscription fees.