The Walt Disney Company has officially announced another price hike for its Disney+ subscription, marking the second increase within two years.
From 12 October onwards, subscribers in the US, opting for the ad-free version of Disney+, will witness a surge in their subscription costs. The price hike is expected to be extended to other countries in the next few weeks.
The company has also decided to expand the reach of its ad-supported option, which will be launched in Canada and selected European countries on 1 November.
Here is the table showing the price increase:
| Tier | After 12 October 2023 | Price Since December 2022 | Price in 2021 |
| Disney+ (ad-free) | $13.99 | $10.99 | $7.99 |
| Hulu (ad-free) | $17.99 | $14.99 | $12.99 |
| ESPN+ (with ads) | $10.99 | $9.99 | $6.99 |
| Disney+, Hulu, ESPN+ (with ads) bundle | $14.99 | $12.99 | N/A |
| Disney+ (ad-free), Hulu (ad-free), ESPN (with ads) bundle | $24.99 | $19.99 | N/A |
Disney is confident that its content is strong and competitive, especially when compared to market leaders like Netflix, which is why it raised its prices.
Bob Iger, CEO of The Walt Disney Company, said in a recent earnings report that the previous price hike resulted in very few people canceling their subscriptions.
Disney’s decision to raise prices again is likely due to the positive trend in subscriber growth. The fact that the ad-supported option remains unchanged in price suggests that Disney is encouraging its customers to switch to this option.
Iger opined that the advertising potential of streaming platforms is currently greater than that of linear television.
Disney+ lost 0.3 million subscribers in the recent quarter, bringing its total subscriber count to 46 million.
Although the ad-inclusive subscription model was only recently introduced, 3.3 million subscribers in North America have already chosen this option, accounting for 40% of new ones in the region.
Disney’s streaming division reported a loss of $512 million in the recent fiscal quarter. While the overall number of subscribers increased by 800,000, there was a significant drop in India, where Disney+ HotStar’s subscriber base fell from 52.9 million to 40.4 million. This was due to the loss of streaming rights for the Indian Premier League (IPL).
