What is the story about?
What's Happening?
Disney has announced a price increase for its streaming services, Disney+ and Hulu, effective October 21. The Disney+ standalone plan with ads will rise by $2 to $11.99 per month, while the ad-free Disney+ Premium plan will increase by $3 to $18.99 per month. The annual Disney+ Premium plan will see a $30 hike to $189.99 per year. Hulu's ad-supported plan will increase from $9.99 to $11.99 per month, though the ad-free version will remain at $18.99 per month. Additionally, ESPN Select's price will rise from $11.99 to $12.99 per month. Bundle plans combining Disney+, Hulu, and ESPN Select will also see price increases. This decision comes amid a wave of cancellations by Disney+ subscribers following the temporary removal of Jimmy Kimmel from its programming.
Why It's Important?
The price hike reflects Disney's strategy to adjust its streaming service pricing in response to market trends and operational costs. As streaming services continue to be a major revenue stream for media companies, Disney's decision could influence similar actions by competitors. The increase may impact consumer behavior, potentially leading to further cancellations or shifts to other platforms. This move highlights the ongoing challenges streaming services face in balancing profitability with subscriber retention, especially as consumers become more price-sensitive.
What's Next?
Disney may face backlash from subscribers who are sensitive to price changes, especially following recent cancellations. The company will need to monitor subscriber numbers closely and possibly implement strategies to retain customers, such as offering promotional deals or enhancing content offerings. Competitors in the streaming industry may also respond by adjusting their pricing or marketing strategies to capitalize on potential dissatisfaction among Disney+ and Hulu subscribers.
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