Disney+ Raises Subscription Prices for Fourth Consecutive Year

Disney+ to raise US subscription prices for the fourth consecutive year, with the ad-supported plan increasing to $11.99/month and the ad-free premium tier to $18.99/month. Bundled packages with Hulu and ESPN+ will also see price hikes. The service launched at $6.99/month in 2019 and has gradually increased prices as it aims to turn its streaming business into a growth engine.

Disney announced on Tuesday that it will be hiking the prices of many of its subscriptions by $2 to $3. The new prices will take effect on Oct. 21. This marks the fourth consecutive year of price increases for Disney+, which launched in 2019 at $6.99 per month.

The standalone Disney+ ad-supported plan will see a $2 increase to $11.99 per month, while the premium no-ads plan will jump $3 to $18.99 per month or get a $30 annual hike to $189.99 per year. The Disney+ and Hulu ad-supported package will increase by $2 per month, and both of the bundles with Disney+, Hulu, and ESPN will see a $3 monthly increase. The packages with Disney+, Hulu, and HBO Max will also both increase by $3 per month.

The price hikes come as the company faces intense scrutiny over its handling of "Jimmy Kimmel Live." Disney subsidiary ABC pulled the show off air last week over the host's controversial comments about the alleged killer of conservative activist Charlie Kirk. The company announced nearly a week later that the show would return to air on Tuesday, after viewers and late-show hosts criticized Disney for its actions. Some fans took to social media to announce they were canceling their Disney+ subscriptions in solidarity with Kimmel.

The price increases are part of Disney's strategy to turn its streaming business into a growth engine. In its August earnings statement, Disney reported that its flagship Disney+ platform added 1.8 million new subscribers in the third quarter and has 128 million subscribers as of last month Disney raising streaming prices for Disney+, Hulu and ESPN^[2].

The price hikes follow a trend seen across the streaming industry. Competitors such as Apple and Netflix have also raised their subscription costs this year. These price increases are in line with the broader trend of streaming costs jumping, as more services compete for subscribers Disney raising streaming prices for Disney+, Hulu and ESPN^[2].

Disney's latest price hike comes after reports that some of its customers were canceling Disney Plus in reaction to the suspension of late night host Jimmy Kimmel's show. On Sept. 17, Disney announced that Jimmy Kimmel Live! would be pulled from the air indefinitely after host Jimmy Kimmel referred to “the MAGA gang” and mocked Donald Trump in relation to the suspected shooter of right-wing activist Charlie Kirk. Backlash was swift, with calls to reverse the move and organized boycotts in response to Disney’s prolonged silence. Disney announced Monday that Jimmy Kimmel Live! would return on Tuesday, though some ABC affiliates owned by companies Nexstar and Sinclair say they will not broadcast the show Disney raising prices on Disney Plus, Hulu, bundles^[3].