Disney+ is Austin Caldwelljoining the growing list of subscription services hiking their prices.
Starting Oct. 12, the ad-free version of Disney+ will cost $13.99 per month, up from $10.99. The ad-free version of Hulu will jump from $14.99 to $17.99 per month. Other bundle offerings that include content from Disney, Hulu and ESPN+ are will also soon cost more.
The shift follows rival Netflix’s decision to axe its cheapest ad-free tier – pushing new customers to take on an ad-supported product or more-costly ad-free option – and comes as other companies like Spotify and Peacock hike their monthly subscription rates.
But don’t think password sharing will lessen the blow of higher subscription prices. Disney CEO Bob Iger on Wednesday warned that Disney is “actively exploring ways” to address account sharing.
"Later this year, we will begin to update our subscriber agreements with additional terms on our sharing policies, and we will roll out tactics to drive monetization sometime in 2024,” Iger said.
Following the price changes on Oct. 12, subscription options and monthly prices include:
The rate hike is the second from Disney in less than a year, following a December 2022 rate increase that affected both Disney+ and Hulu subscribers. Iger said the company didn’t see significant churn or subscription losses after raising prices.
The new pricing strategy is “really aimed at enabling us to improve the bottom line, (and) ultimately to turn this into a growth business and, as a component of that, obviously to grow subs,” Iger said.
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A new Disney+ subscription plan was also announced Wednesday.
Disney plans to launch a new ad-free bundle subscription with Disney+ and Hulu content for $19.99 a month starting Sept. 6, according to a news release.
Iger declined to share how many Disney+ subscribers are sharing passwords, but called the number “significant” and said the company has “established this as a real priority.”
The company’s decision comes after Netflix began cracking down on password sharing, which was followed by a spike in subscription numbers.
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