Disney+ is about to get more expensive for many users.
Per a report from CNBC, Disney is planning to raise the price of its streaming service by the end of this year. Starting on December 8 in the U.S., Disney+ will cost $10.99—a $3 (38%) increase from the current price. An ad-supported version of the service that costs $7.99/mo. will be introduced at the same time for those who want to save a bit of money, however.
Disney has been prompted to raise streaming prices due to significant operating losses, as explained by CNBC.
The price increases reflect the growing operating loss for Disney’s streaming services. Disney+, Hulu and ESPN+ combined to lose $1.1 billion in the fiscal third quarter, $300 million more than the average analyst estimate, reflecting the higher cost of content on the services. The increased operating loss occurred even while Disney added about 15 million new Disney+ subscribers in the quarter, about 5 million more than analysts estimated.
Disney has also announced new prices for its other streaming services, including Hulu.
- Hulu without ads will rise by $2/mo. starting October 10, from $12.99 to $14.99
- Hulu with ads will go up by $1/mo. ($6.99 to $7.99)
- ESPN+ with ads to increase to $9.99/mo. (43% increase)
And here’s some of the prices that Disney is planning for some of its bundled options.
- Bundle of Disney+, Hulu, and ESPN+ without ads will remain $19.99/mo.
- Bundle of Disney+ without ads and Hulu and ESPN+ with ads will increase from $13.99 to $14.99 (existing customers only)
- Bundle of Disney+, Hulu, and ESPN+, all with ads, will be $12.99 ($1 lower than the current price)
- A Disney+ and Hulu bundle with ads will be available for $9.99/mo.
Disney previously predicted that its new streaming service would not be profitable until 2024, but the company has already attracted over 220 million subscribers between its Disney+, ESPN+, and Hulu services.
Source: CNBC