Disney has once again made waves in the streaming industry with the announcement of significant price hikes for their beloved streaming services, including Disney+, Hulu, and ESPN+. Effective October 17, Disney+ with ads will now cost $9.99 per month, a steep 25% increase. The ad-free version will rise to $15.99 per month, reflecting a 14% hike. Moreover, the Disney+ and Hulu bundle with ads will now be priced at $10.99 per month, up by 10%.
The move to increase prices isn’t just about revenue; it’s also about enhancing the value offered to subscribers. Beginning September 4, Disney+ subscribers can look forward to new content, such as ABC News Live and an exclusive playlist of preschool programming. Later in the year, premium subscribers will get additional channels with a focus on documentaries, action films, and pop culture, making their streaming experience even more dynamic and engaging.
This announcement comes just before Disney is set to reveal its third-quarter earnings on August 7. Analysts are predicting an earnings per share (EPS) of $1.20 and revenues hitting $23.110 billion. Such financial expectations and the new pricing strategy reflect Disney’s continued growth and its efforts to stay competitive in the bustling streaming market.
Interestingly, the announcement seems to have positively affected not only Disney but also its competitors. Netflix shares saw a noticeable boost, up by 2.66%, trading at $614.45. This uplift in the market suggests that investors are optimistic about the profitability of price increases in streaming services.
Disney shares responded positively to the news, trading at $90.37, up 2.94% at the time of writing. This kind of market reaction indicates strong investor confidence in Disney’s strategic moves to increase revenue and enhance content offerings.
What do you think about Disney’s price hike and new programming options? Share your thoughts below and let’s get the conversation started! Don’t forget to share this story with your friends to see what they think as well.
Source: Vaishali Prayag
