Disney+ Announces Another Price Increase
▼ Summary
– Disney is increasing Disney Plus subscription prices effective October 21st as part of its strategy to boost streaming profits.
– The ad-supported plan will cost $11.99 monthly (a $2 increase), while the premium no-ads plan will be $18.99 monthly (a $3 increase).
– This continues a pattern of seasonal price hikes, with increases also occurring in December 2022 and October 2023, following the service’s launch at $6.99 in 2019.
– The price increase announcement follows a PR crisis from Disney’s temporary removal of Jimmy Kimmel Live! after the host’s controversial comments.
– According to a report citing a Disney source, the company rushed to restore the show to avoid further subscription losses before the price hike announcement.
Disney+ subscribers will soon face higher monthly bills as the entertainment giant implements another round of price increases for its streaming platform. Effective October 21st, the cost of accessing Disney’s vast library of movies and shows is set to climb. The basic ad-supported plan rises by two dollars to $11.99 per month. For viewers preferring an uninterrupted experience, the premium ad-free tier jumps by three dollars to $18.99 monthly, with the annual payment option increasing by thirty dollars to $189.99. These adjustments also extend to various bundled offerings, detailed on the official Disney+ support page.
This marks the latest in a series of incremental price hikes since the service’s 2019 debut at a modest $6.99. The company has established a pattern of raising rates, with similar adjustments occurring in December 2022 and October 2023. This strategy appears aligned with the company’s financial goals, as its streaming division reported its first-ever profit last year. The consistent upward pricing trend reflects a broader industry shift as media companies seek sustainable revenue from their direct-to-consumer platforms.
The announcement’s timing, however, raises eyebrows. It comes just days after Disney navigated a significant public relations storm involving Jimmy Kimmel Live!. The company faced intense backlash after indefinitely suspending the talk show following the host’s controversial remarks, only to reverse the decision six days later. Reports suggest the swift reinstatement was a strategic move to mitigate subscriber loss ahead of the price increase news. According to journalist Marisa Kabas, an internal source indicated that with subscriptions already declining after the suspension, Disney could not afford further customer attrition coinciding with the new pricing structure. This sequence of events highlights the delicate balance media companies must maintain between content management, public perception, and financial strategy.
(Source: The Verge)