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Hulu And Disney+ will Increase Their Monthly Ad-free Plans To $17.99 & $13.99 Soon

1 years ago By Movies Desk

In a strategic move to enhance the profitability of its streaming business, Disney has announced significant price hikes for its streaming services, including Disney+ and Hulu. These price adjustments are set to take effect soon, prompting discussions about how Disney’s content library competes in the ever-evolving streaming landscape.

Disney+ Price Increase:

– Disney+ is set to increase its monthly cost for the commercial-free plan from $10.99 to $13.99 per month, marking a substantial 27% increase. This change will be effective starting October 12.

– However, Disney+ will continue to offer a more budget-friendly option at $7.99 per month for subscribers willing to tolerate ads.

– Notably, Disney plans to expand its ad-supported offering to select markets in Europe and Canada from November 1, further diversifying its pricing strategy.

Hulu Price Adjustment:

– Hulu, a popular streaming service owned by Disney, will also see a price hike. The ad-free version of Hulu will increase from $14.99 to $17.99 per month, reflecting a 20% increase.

– Meanwhile, Hulu’s ad-supported plan will remain at the unchanged rate of $7.99 per month, providing an affordable alternative for viewers.

Positioning Against Competitors:

– These price increases signal Disney’s confidence in the strength of its content library. Streaming giants like Netflix and Warner Bros will price Disney+ almost as high as their commercial-free plans. Discovery’s Max.

-Disney+ intentionally priced itself at a competitive $6.99 per month, nearly half the cost of Netflix when it launched in 2019, in order to attract a wide audience.

– Surprisingly, a previous price hike of $3 per month for Disney+ in 2022 led to minimal subscriber cancellations, as per Disney’s CEO, Bob Iger. This encouraged Disney to further explore price adjustments.

Emphasis on Ad-Supported Services:

– Disney’s strategy is to steer users towards its ad-supported services by maintaining consistent pricing for those plans. The streaming advertising landscape is currently more robust than traditional linear TV, according to Iger.

– The company has seen success with this approach, with approximately 40% of new Disney+ subscribers opting for the ad-supported tier.

Content Pipeline Challenges:

– Despite these pricing changes, Disney faces potential content pipeline disruptions due to ongoing strikes by Hollywood writers and actors.

– Disney is betting that consumers will still be willing to pay more for its streaming services, given its vast content offerings.

New Subscription Bundles:

– For customers interested in both Disney+ and Hulu without commercials, a “premium duo” offering is available at $19.99 per month, offering a $12 per month savings. This option was launched on September 6.

– Disney also increased the price of its bundle, including Disney+ (no ads), Hulu (no ads), and ESPN+ (with ads), to $24.99 per month from $19.99 per month. The bundle with commercials will now be $14.99 per month, reflecting a $2 per month increase.

Financial Implications:

– Disney’s streaming division reported a loss of $512 million in its fiscal third quarter. However, Disney+ (excluding India’s Hotstar) managed to add 800,000 subscribers during this period.

– Disney+ now boasts 105.7 million subscribers (excluding Hotstar), with a total of approximately 146 million subscribers across all its streaming services.

Hulu + Live TV Pricing:

– Hulu + Live TV will also see price adjustments, with the ad-supported version increasing to $76.99 from $69.99 per month. The commercial-free option will now cost $89.99 per month, up from $82.99 per month.

In summary, Disney’s decision to increase prices on its streaming services reflects its confidence in the value of its content and its pursuit of profitability in the competitive streaming landscape. These changes will undoubtedly shape the future of Disney’s streaming business and impact consumer choices in the evolving world of online entertainment.

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