'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
As streaming platforms continue to evolve, Disney is taking bold steps to adjust its pricing strategy across all its services, including Disney+, Hulu, and ESPN+, effective October 17, 2024. The move, aimed at boosting the company's top-line revenue and profitability, comes amid the broader industry trend of increasing subscription costs, often dubbed "streamflation." The announcement was made on Tuesday, August 6, 2024, putting up Disney's commitment to enhancing its streaming offerings.
New features, such as additional curated playlists and the inclusion of the ABC News Live streaming channel, are set to debut. Disney is presenting these enhancements as part of its effort to improve the viewer experience and justify the forthcoming price adjustments. Despite the price hikes, Disney asserts that its service offerings remain the best in quality.
In their announcement, they stated:
“With this growing offering, and new ways to enjoy your favorite Disney+ content, Disney subscription plans remain among the best values in streaming today.”
Trending
Price adjustments and new offerings of Disney+
Disney’s revised pricing structure introduces a significant increase across its various streaming tiers. The ad-supported version of Disney+ will rise by $2 to a new monthly fee of $9.99, while the Premium (no ads) tier will also see a $2 increase, reaching $15.99.
Hulu’s pricing adjustments are similar, with its ad-supported plan going up to $9.99 and the ad-free version increasing to $18.99. Notably, the bundled offerings are also affected, the Disney Bundle Trio Basic will now cost $16.99, up from $14.99, and the Premium version will jump to $26.99, previously $24.99. These changes reflect Disney’s strategy to leverage its diverse content offerings to support higher pricing models.
Enhanced content and subscriber benefits
To complement the price hikes, Disney is enhancing its content offerings. Starting September 4, Disney+ subscribers will have access to the ABC News Live streaming channel and a new playlist designed for preschool audiences, featuring popular series like Sofia the First and Puppy Dog Pals. Later in the fall, premium subscribers will enjoy four additional curated playlists, including themes such as Seasonal Content, Epic Stories, Throwbacks, and Real Life, with content refreshed monthly.
Alisa Bowen, president of Disney+, stated:
“Playlists are the latest example of how we’re providing the best value and experience for our subscribers every time they open Disney+. Whether its news, kids’ content, popular genres, hit TV shows or blockbuster films, there will be something for everyone in a lean-back viewing experience based on seasonality and interest.”
Why did Disney increase the prices?
These pricing adjustments come as Disney prepares to release its Q3 earnings report on August 7, 2024. The strategic price increases and enriched content offerings are designed to strengthen Disney's competitive position in a saturated market. The Disney+/Hulu/Max combo remains unchanged in price, reflecting a strategic partnership with Warner Bros.
The broader pricing strategy will likely play a crucial role in Disney's ongoing efforts to enhance profitability and shareholder value. As the streaming market continues to expand, Disney's ability to balance price increases with major content enhancements will be crucial for maintaining its appeal and customer base in the face of rising competition and evolving consumer expectations.
New prices offered by Disney
Here is a chart where you can see the new offerings that Disney is providing.
Prices effective as of October 17, 2024, for U.S. customers.
