Disney Announces Price Hikes for Streaming Services Disney+, Hulu, and ESPN+
Disney has announced upcoming price increases for its streaming services Disney+, Hulu, and ESPN+. The new pricing will take effect on October 17, 2024, as the company navigates a challenging media landscape marked by shifting consumer habits, rising operational costs, and stringent regulatory scrutiny.
Starting mid-October, Disney+ subscribers in the U.S. will see a $2 increase in their monthly fees. The ad-supported plan will rise from $7.99 to $9.99, while the ad-free plan will go up from $13.99 to $15.99. Hulu’s ad-supported plan will also increase to $9.99 per month from $7.99, and its ad-free option will jump to $18.99 from $17.99. ESPN+ will see a $1 increase, bringing the monthly cost to $11.99.
In addition to the price hikes, Disney+ will introduce new features aimed at enhancing subscriber experience. Ahead of the 2024 Presidential Election, Disney+ will provide access to ABC News Live and a continuous playlist of content tailored for preschool-aged children.
This move follows Disney’s previous price adjustments last year, which aimed to make its streaming services profitable. Disney+ debuted nearly five years ago with an initial subscription fee of $6.99 per month. Despite early financial losses, Disney’s direct-to-consumer segment, which includes Disney+ and Hulu, achieved its first profit in May 2024. The company’s third-quarter financial results are anticipated on Wednesday.
Disney’s decision to raise prices reflects the ongoing competition in the streaming industry, where Netflix remains the dominant player and the only consistently profitable service. Disney’s recent efforts, including incremental profits in its streaming division, signify its ambition to become a strong contender in the market.
