Disney+ Prices to Increase Again in October
The Walt Disney Company announced on Tuesday that it will be raising prices for its popular streaming service, Disney+, effective October 21. This marks the second price hike in less than a year, sparking concerns among subscribers and industry experts.
According to sources, the standard Disney plan with ads will increase by $2, from $12 per month to $14. The ad-free Disney Premium option will rise by $3, from $16 per month to $19. This means that the monthly ad-free Disney plan has nearly tripled in price since its launch six years ago.
The price increases also apply to various bundle options, including:
Disney and Hulu with ads: currently $11 per month, increasing to $13
Disney, Hulu, and ESPN Select with ads: currently $17 per month, increasing to $20
Disney, Hulu, and ESPN Select Premium (ad-free): currently $27 per month, increasing to $30
Disney Premium (ad-free), Hulu, and ESPN Select (both with ads): currently $22 per month, increasing to $25
"We understand that price increases can be frustrating for our customers," said a spokesperson for The Walt Disney Company. "However, we continue to invest in high-quality content and innovative features that enhance the user experience."
Industry analysts are divided on the implications of this move. "While it's not uncommon for streaming services to raise prices over time, Disney+ has been particularly aggressive in its pricing strategy," said Michael Nathanson, a media analyst at MoffettNathanson. "This could lead to subscriber fatigue and increased competition from rival services."
The price hike comes as Disney is trying to put the recent controversy surrounding Jimmy Kimmel Live! behind it. The show's return on Tuesday night was met with skepticism by some viewers.
As of now, subscribers will have until October 20 to adjust their plans before the price increases take effect. Those who fail to make changes may see their monthly bills rise automatically.
The latest development in this story highlights the ongoing struggle for streaming services to balance revenue growth with customer satisfaction. As the market continues to evolve, it remains to be seen how Disney+ will adapt and respond to changing consumer preferences.
Background:
Disney+ launched in November 2019 as a direct competitor to Netflix and other streaming giants. Initially priced at $6.99 per month, the service has since raised prices multiple times, with the most recent increase occurring in March of this year.
Additional Perspectives:
"The price hike is a clear indication that Disney+ is prioritizing revenue growth over customer loyalty," said Sarah Jones, a media critic and streaming expert.
"While some subscribers may be willing to pay more for premium content, others will likely seek out cheaper alternatives or cancel their subscriptions altogether," added Nathanson.
Current Status:
The price increases are set to take effect on October 21. Subscribers who wish to avoid the higher rates can adjust their plans before then by visiting the Disney+ website or mobile app.
Next Developments:
As the streaming landscape continues to shift, it will be interesting to see how Disney+ responds to growing competition and changing consumer preferences. Will the company continue to raise prices in an effort to drive revenue growth, or will it explore alternative strategies to retain subscribers? Only time will tell.
*Reporting by Engadget.*
