Disney is set to raise prices across its streaming services—Disney+, Hulu, and ESPN+—by as much as 25% come October 17th. This might sound like a shocker, especially in an industry where every penny counts for subscribers, but Disney’s CFO Hugh Johnston has a compelling rationale behind the hike. In Disney’s Q3 2024 earnings call, Johnston confidently stated that the company has “earned the right” to impose this increase, thanks to richer content offerings and improved user experience.
Johnston’s sentiment echoes the company’s strategic pivot. Disney is focusing less on merely racking up subscription numbers and more on enhancing user engagement—essentially, ensuring you spend more time on their platforms. This is a crucial shift supported by the introduction of new live channels and a beefy slate of upcoming movies, all aimed at making your Disney+ binge sessions even more irresistible.
Disney CEO Bob Iger isn’t losing sleep over potential customer blowback. When queried about the risks of subscribers jumping ship due to these price adjustments, Iger brushed it off, noting that each past increment has resulted in only “modest churn.” It’s a vote of confidence that suggests Disney’s content magnetism far outweighs the deterrent of higher costs. And it appears they’re right: so far, the churn—subscribers leaving the platform—has been minor.
Not to mention, the company is tackling another contentious issue head-on: password sharing. While some might have anticipated a subscriber exodus over stricter rules, Iger revealed that the backlash has been minimal. Starting September, Disney plans to ramp up these efforts, thereby establishing a more secure and profitable environment for its streaming services.
Disney’s price hikes might sound daunting, but the trade-off appears to be an enriched, more engaging streaming experience. What are your thoughts on this new direction? Are you ready to dig deeper into your pockets for expanded content, or will you seek your entertainment elsewhere? Share your views in the comments below!
Source: Ars Technica
