Walt Disney Co. (NYSE:DIS) is raising prices for its streaming services, with the cost of Disney+ with ads increasing by 25% to $9.99 per month. The ad-free Disney+ subscription will rise by 14% to $15.99. Additionally, the bundle offering Disney+ and Hulu, both with ads, will see a 10% increase to $10.99 per month. These changes will take effect on October 17. Hulu and ESPN+ will also see price hikes.
Disney shares rose as much as 4.7% to $91.91 in afternoon trading in New York following the announcement.
The price adjustments come alongside an expansion of Disney+ programming. Starting September 4, subscribers will gain access to ABC News Live and a playlist of preschool programming. Later in the year, premium subscribers can look forward to new channels dedicated to documentaries, action films, and pop culture.
This move follows similar price increases from competitors, including Netflix Inc. (NASDAQ:NFLX), Comcast Corp.’s Peacock (NASDAQ:CMCSA), and Warner Bros Discovery Inc.’s Max (NASDAQ:WBD). Disney had previously raised streaming prices by up to 27% last year.
As traditional media companies shift from broadcast and cable TV to streaming due to shrinking audiences and declining ad sales, Disney remains committed to achieving profitability in its streaming division by the fourth fiscal quarter. Management is set to report third-quarter financial results on Wednesday.
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