The timing isn’t great. Just as social media backlash was peaking over the suspension of Jimmy Kimmel’s late-night show, Disney rolled out its latest round of streaming price increases, effective October 21.
Here’s the breakdown:
- Disney+ with Ads: +$2, now $11.99/month
- Disney+ Premium (No Ads): +$3, now $18.99/month
- Disney+ Premium Annual: +$30, now $189.99/year
- Hulu with Ads: +$2, now $11.99/month
- Hulu with No Ads: No change, remains $18.99/month
- ESPN Select: +$1, now $12.99/month
Bundles Are Getting More Expensive Too:
- Disney+ & Hulu (With Ads): +$2, now $12.99/month
- Disney+, Hulu, ESPN Select (With Ads): +$3, now $19.99/month
- Disney+, Hulu (No Ads), ESPN Select (Ads): +$3, now $29.99/month
This is the fourth time in four years that Disney has raised streaming prices. While that puts them in line with the rest of the industry, the broader context makes this round especially precarious.
Last week, Disney suspended Kimmel’s show indefinitely, triggering subscriber cancellations and criticism from within the entertainment community. Although Disney reversed the decision days later, the damage may already be done. Disney+ subscribers took to social media to share screenshots of their canceled accounts, and public sentiment soured just as new pricing was announced. Despite this, Disney is pushing ahead with its pricing strategy.
Disney’s streaming strategy isn’t just about short-term churn. The company is playing a longer game, trying to shore up revenue while boosting the perceived value of its content. CFO Hugh Johnston, speaking last year, laid out the company’s logic plainly: “We certainly look to continue to increase pricing in line with the value that we’re providing to consumers.”
That value includes the company’s recent investment in live sports. In August, Disney launched its new ESPN app, anchoring a renewed push into the sports streaming space. Alongside this, Disney is continuing to offer a Disney+, Hulu, and ESPN Unlimited Bundle at $29.99/month, a price point that includes full access to ESPN’s linear channels. The “Select” bundle offers a lighter version.
The timing may be awkward, but Disney clearly believes it can weather the churn and grow ARPU in the process.
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