WALT Disney is raising the prices of its streaming services, with the lowest-cost offering, Disney+ with advertising, climbing 25 per cent to US$9.99 a month.
Disney+ without ads will increase 14 per cent to US$15.99, according to an announcement on Tuesday (Aug 6). A bundle that includes Disney+ and Hulu, both with ads, rises 10 per cent to US$10.99 a month. The increases take effect Oct 17. Hulu and ESPN+ will also raise prices.
The shares rose as much as 4.7 per cent to US$91.91 in afternoon trading in New York.
As part of the change, the company is adding programming choices to Disney+, including channels that stream continuously. Starting Sep 4, Disney+ subscribers will be able to watch ABC News Live and a playlist of preschool programming. Later this year, premium subscribers will get channels devoted to documentaries, action films and pop culture.
In recent months, rival online video services including Netflix, Comcast’s Peacock and Warner Bros Discovery’s Max have also announced plans to raise prices. Disney increased its streaming prices by as much as 27 per cent a year ago.
Disney, like other traditional media giants, is transitioning to streaming from broadcast and cable TV, where audiences are shrinking and ad sales are declining.
The company has vowed its streaming business will be profitable by its fourth fiscal quarter. Management is scheduled to report third-quarter financial results on Wednesday. BLOOMBERG
