Disney will soon hike the monthly subscription price of its streaming service almost 40%. When Disney+ first launched, it was one of the cheapest streaming streaming services. Not for much longer.
The company also increased the cost of Hulu and ESPN+.
Disney+ is more expensive for everyone
It’s not hard to guess the reason for the price rise: Disney+ isn’t anywhere close to being profitable. Quite the opposite. In the spring quarter alone, Disney’s three streaming services lost $1.1 billion. Users want fresh content, like The Mandalorian season 3 and and Loki season 2, but these shows are expensive to produce.
Disney+ debuted in 2019 at $6.99 per month. That later went up to $7.99 per month. And on December 8, it’ll jump to $10.99 per month, with an annual subscription at $109.99.
But there’s a way to get Marvel, Star Wars, Pixar, Disney, etc. shows for less. A new ad-supported subscription will also debut in December. This will cost $7.99 per month, with no annual subscription available.
After the change, the service is still more affordable than Netflix but much more expensive than Apple TV+, while rivals like Discovery+ and Paramount+ already offer ad-supported plans from $4.99 per month.
Hulu and ESPN+ price increases
Hulu, which the Mouse also owns, is getting a price increase as well. A premium subscription without advertising will be $14.99 price month, a $2 jump. Hulu with ads will be $7.99 per month.
Disney is raising the cost of ESPN+ with ads to $9.99 per month.
“With our new ad-supported Disney+ offering and an expanded lineup of plans across our entire streaming portfolio, we will be providing greater consumer choice at a variety of price points to cater to the diverse needs of our viewers and appeal to an even broader audience,” said Kareem Daniel, Chairman, Disney Media & Entertainment Distribution.