Disney+ Raises Subscription Prices by 14% to 25%

Disney has announced that it will increase the subscription prices for its streaming service, Disney+, effective from October 21. The ad-supported Disney+ plan will see a $2 increase, raising the monthly cost to $11.99. The ad-free Premium plan will increase by $3, bringing the monthly cost to $18.99 or an annual cost of $189.99. Additionally, the combined Disney+ and Hulu plan will see a $2 monthly increase, while the Disney+, Hulu, and ESPN bundle will rise by $3 per month. The Disney+, Hulu, and HBO Max bundle will also see a $3 monthly increase. The NFL+ subscription fee will remain unchanged.

This price adjustment comes after Disney hinted at a potential increase during its third-quarter earnings call, where it also projected a modest growth in Disney+ subscribers for the fourth quarter. The last price increase for these plans occurred in October 2024, with most plans seeing a $1 to $2 increase. The company's decision to raise prices aligns with its strategy to invest in content production and expand its streaming offerings, despite facing scrutiny over its handling of the "Jimmy Kimmel Live!" show. The show was temporarily pulled from ABC due to controversial comments made by the host about the death of conservative activist Charlie Kirk. Following criticism from viewers and late-night show hosts, Disney reinstated the show on Tuesday.

Disney's move to increase subscription prices is part of a broader strategy to enhance its streaming service's value proposition. By investing in high-quality content and exclusive releases, Disney aims to maintain its competitive edge in the crowded streaming market. The price hike is likely to impact consumer spending on entertainment services, but Disney's strong brand and extensive content library may help mitigate any significant backlash from subscribers. The company's focus on delivering premium content continues to be a key driver of its streaming service's success, positioning it well to navigate the evolving landscape of digital entertainment.