Disney+ Price Hike: A Closer Look at the Impact on Subscribers and the Bottom Line

Disney is increasing prices for most of its premium streaming services on Oct. 21, with the flagship Disney+ offering without ads rising to $18.99 a month, a 172% increase from its original 2019 price point. This will make it more cost-effective to bundle services or pay up for an ad-free tier. The price hike is the fourth consecutive year-end increase and follows a 20% jump in the ad-supported version and a 19% boost for the higher-priced option without ads.

Walt Disney (DIS) has announced a significant price hike for its streaming services, effective October 21. The ad-supported Disney+ plan will increase by $2 to $11.99 per month, while the ad-free tier will rise by $3 to $18.99 per month Disney+ And Hulu Prices Jump Again, Second Streaming Hike In A Year^[1]. This is the second price increase in a year, following a similar hike in October 2024.

The move comes as Disney continues to invest in its streaming offerings and original content. The company recently launched ESPN's direct-to-consumer streaming service, which is expected to boost subscriber growth and profitability Disney raising prices for streaming services^[2]. The price hikes are part of Disney's strategy to remain competitive in the crowded streaming market, where companies like Netflix, Amazon Prime, and Warner Bros. Discovery are also raising prices and investing in exclusive content.

The price increases are likely to have an impact on Disney's subscriber base. However, Disney's stock has shown resilience, gaining 0.81% year-to-date despite the price hikes Disney+ And Hulu Prices Jump Again, Second Streaming Hike In A Year^[1]. The company's stock closed lower by 0.28% on Tuesday, following the announcement Disney+ And Hulu Prices Jump Again, Second Streaming Hike In A Year^[1].

The price hikes coincide with heightened scrutiny over Disney's handling of "Jimmy Kimmel Live!," which was briefly pulled by Disney after Kimmel's comments about the assassination of conservative activist Charlie Kirk. Some fans have canceled their Disney+ subscriptions in protest Disney+ And Hulu Prices Jump Again, Second Streaming Hike In A Year^[1].

Disney's price increases are part of a broader trend in the streaming industry, where companies are raising prices and consolidating services to remain profitable and competitive. The company's strategy appears to be working, with Disney+ and Hulu seeing modest subscriber growth despite the price hikes Disney+ And Hulu Prices Jump Again, Second Streaming Hike In A Year^[1].