Disney has announced that it will increase the price of Disney Plus to $10.99/month, up from the current price of $7.99/month, as of December 8 in the US. The move comes as the company plans to restructure its pricing options, which will soon include an ad-supported tier of $7.99 per month.
Disney is also increasing the price of its Hulu subscription. The ad-free tier goes from $12.99/month to $14.99, while the ad-supported version costs $7.99/month, from $6.99. The new prices will take effect on October 10. In July, a price increase was announced for unbundled ESPN Plus streaming, pushing the monthly price from $6.99 to $9.99 per month.
The price increases also affect bundled plans. Users with an ad-free Disney Plus subscription and an ad-supported subscription for Hulu and ESPN Plus will increase from $13.99 to $14.99/month. Disney is also introducing a bundle with Disney Plus and Hulu with ads for $9.99 per month. Meanwhile, Disney Plus, Hulu, and ad-supported ESPN Plus cost $19.99/month.
Disney has also adjusted prices for its Hulu live TV bundles. Hulu’s Live TV bundle with ad-supported Disney Plus, Hulu, and ESPN Plus subscriptions costs $69.99/month. The live TV bundle with ad-free Disney Plus, as well as ad-supported Hulu and ESPN Plus subscriptions, costs $74.99. To get a live TV subscription without ads on Disney Plus or Hulu and ad-supported ESPN Plus, you have to pay $82.99/month.
Last quarter, Disney reported that it added 8 million new subscribers to Disney Plus around the same time that Netflix announced its first subscriber decline in a decade. Now, Disney CEO Bob Chapek says it added 14.4 million customers to Disney Plus in the third quarter to reach a total of 152 million and 221 million across all of its services; At the same time, its direct-to-consumer division, which includes its streaming units, lost more money than in previous years. According to Disney, rising production and programming costs for Disney Plus and higher sports programming costs at ESPN Plus contributed to the losses.
Direct-to-consumer revenue for the quarter increased 19% to $5.1 billion and operating loss increased $0.8 billion to $1.1 billion. The increase in operating loss was the result of a higher loss at Disney+, lower operating income at Hulu and, to a lesser extent, a higher loss at ESPN+.
During an earnings call, the company cut its subscriber forecast for 2024. It now expects Disney Plus to have somewhere between 215 million and 245 million subscribers, rather than its previous forecast of 230 million to 260 million.
“We remain confident that Disney Plus will be profitable in fiscal 2024,” Disney CFO Christine McCarthy said during the call.
When asked about sports betting — something Chapek has hinted at in the past — Chapek said the company “has been in talks with a number of different platforms” to add the functionality, and hopes “to do something about it in the future.” to announce in terms of a partnership.”
Correction Aug 10 5:40 PM ET: An earlier version of the article stated that Disney Plus, Hulu, and ESPN Plus would cost $19.99 per month without ads, while ESPN Plus will actually have ads in this bundle. We regret the mistake.