Disney raises prices for Disney+, Hulu and ESPN+

Disney has unveiled a new pricing structure that incorporates ad-supported Disney+ as part of an effort to make its streaming business profitable.

Starting December 8 in the US, Disney+ with ads will cost $7.99 per month – currently the price of Disney+ without ads. The price of ad-free Disney+ will increase by 38% to $10.99, an increase of $3 per month.

Hulu’s ad-free price will increase by $2 per month, from $12.99 to $14.99, starting October 10. Hulu with ads will increase by $1 per month from $6.99 to $7.99.

Disney announced last month that ESPN+ with ads would increase 43% to $9.99 per month.

The price increases reflect the growing operating loss of Disney’s streaming services. Disney+, Hulu and ESPN+ combined to lose $1.1 billion in the fiscal third quarter, $300 million more than analysts’ average estimate, reflecting the higher cost of content on the services.

Disney+ average revenue per user decreased 5% in the quarter in the US and Canada due to more customers taking up cheaper multi-product offers.

Overall, the company’s quarterly results, also announced on Wednesday, beat analysts’ expectations for the top and bottom results. Disney+ subscriptions grew to 152.1 million in the most recent period, higher than Wall Street projections of 147 million.

Bundle Pricing

Disney also announced new bundle pricing incorporating its Disney+ product with ads.

For existing customers only, a bundle of Ad-Free Disney+ and Ad-Free Hulu and ESPN+ will increase by $1, from $13.99 to $14.99.

The price for a Disney+, Hulu, and ESPN+ package, all with ads, will be $12.99, which is $1 less than the current Disney package price.

Consumers will be able to purchase a Disney+ and Hulu package for $9.99 per month with ads. It’s a discount for paying Disney+ and Hulu separately with ads.

Pricing for an ad-free Disney+ and ad-free Hulu, with ESPN+, will be $19.99 per month.

cnbc Business

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button