Disney to Increase Streaming Prices for Disney+, Hulu, and ESPN+ in October

Disney said there will be price increases of its OTT streaming services, including Disney+, Hulu, and ESPN+, from mid-October to increase the profits and margins in a market fundamentally led by Netflix.

The new pricing structure, which was announced on Tuesday, will see most plans rise by $1 to $2 per month, with the premium Hulu plans, which add live TV, rising by $6 monthly.

 Hulu’s ad-supported plan will be set at $9.99 per month, where the ad-free versions will cost $18.99.

ESPN+, which includes ads, will increase to $11.99 per month.

According to CNB, the price differences are part of Disney’s tricks to drive customers towards bundle packages, helping better value for merger services. 

The existing Bundle of Disney+ and Hulu with ads will rise by $1 to $10.99 per month, while the ad free bundle will stay at $19.99 per month. 

Disney has also collaborated with Warner Bros. Discovery offers a new bunch that includes Disney+, Hulu and Max. Launched in July, this bundle is available for $16.99 with ads or $29.99 without, providing a 38% savings compared to buying the services separately. 

Additionally, Disney declared improvements to its OTT streaming services. Starting from September 4th, all Disney+ subscribers will gain access to ABC News Live and a new preschool content playlist, with four more accurate playlists set to be introduced for premium subscribers later this year. 

"Playlists are the latest example of how we're providing the best value and experience for our subscribers every time they open Disney+," said Alisa Bowen, president of Disney+.

At present, Netflix continues to be the dominant force in the streaming industry and the only competitor in the segment that has constantly achieved profitability. 

Since the launch of Disney+ nearly five years ago, Disney has steadily increased its streaming prices in an effort to make its direct-to-consumer segment profitable,a goal it briefly reached this year.  

Disney will release its fiscal third-quarter earnings on Wednesday, offering extra insight into its financial performance.