Disney is rolling out another price hike, and this time it’s hitting three of its biggest platforms—Disney+, Hulu, and ESPN Select. Starting next month, subscribers will see their monthly bills climb by 20%, marking yet another increase in a string of recent hikes across the streaming industry. But what’s really driving these changes, and why now?
Disney unveils major streaming price hikes across platforms
Disney is the latest media giant to raise streaming prices, following in the footsteps of rivals like Apple and Netflix. Starting October 21, subscribers will see notable jumps across Disney’s lineup. The ad-supported Disney+ plan will increase from $9.99 to $11.99 per month, while the ad-free tier is climbing from $15.99 to $18.99. For those bundling services, the Disney+ and Hulu package with ads will rise by $2 to $12.99 a month, with the ad-free option priced at $19.99. The most comprehensive bundle—including Disney+, Hulu, and ESPN Select—will now cost $19.99 with ads (up from $16.99) or $29.99 without ads (up from $26.99).
These price hikes are a big deal because they reflect a major shift in the media landscape. While Disney+ reported adding 1.8 million new subscribers in its most recent quarter, bringing its total to 128 million, the company and its rivals are now focused on monetizing their massive user bases. The streaming industry, which has been in a rapid growth phase, is now maturing. According to Nielsen, as of last month, nearly half of U.S. viewers (46%) were watching content on streaming platforms, compared to just 23% on cable and 19% on traditional broadcast networks. This consumer migration underscores why companies like Disney are investing heavily in streaming and why they have the leverage to charge more as they work toward profitability.
The reasons behind Disney’s streaming price hikes
Several factors are driving Disney’s latest round of increases, reflecting broader trends across the streaming industry.
Profitability of streaming
In its early years, Disney+ struggled with losses and razor-thin margins. Now that the service has finally turned profitable, higher subscription fees are being used to strengthen that momentum and ensure long-term growth.
Rising costs
Creating original shows and films, securing content rights, and maintaining streaming technology all come with rising expenses—from inflation to labor and infrastructure. Like many competitors, Disney is passing some of these costs on to its subscribers.
Market competition and bundles
Because Disney bundles its services, such as Hulu and ESPN Select, price changes in one platform often ripple across the others. And with rivals like Apple, Comcast’s Peacock, and Netflix all raising their rates this year, Disney is less likely to be singled out for its own hikes.
Ad-supported vs. ad-free tiers
The company’s tiered model plays a big role in its pricing decisions. Ad-free plans bring in no advertising revenue and typically offer better streaming quality, making them more expensive to sustain than ad-supported options.
Routine adjustments
This isn’t Disney’s first increase, and it likely won’t be the last. After similar hikes in 2022, 2023, and 2024, annual adjustments have become part of its strategy to keep pace with rising costs and evolving consumer habits.
Source: CBS News