Streaming Price Hike
Disney+ and Hulu Raise Ad-Free Monthly Prices by 13% This September
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Key Points
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The new ad-free Disney+ price of $21.49 per month brings it closer to Netflix’s $26.99 premium plan, which includes 4K resolution and access on multiple devices.
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Disney’s ad-free Disney+ tier has nearly doubled from its $10.99 monthly price in 2023, before that year’s fall increase.
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The price increase coincides with Pixar’s “Toy Story 5” debut on Disney+ on Sept. 23, giving the service a major new release as the higher rates take effect.
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Disney recently changed its European subscriber agreement to clarify that ads may appear before and after playback on all subscription tiers, although U.S. subscribers had not received a corresponding agreement update at the time of the report.
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Disney said in August that operating income from the entertainment division containing its film studio, non-sports television networks and Disney+ rose 64% year over year in its third quarter, with subscription growth cited as a driver.
Disney is raising prices on Disney+ and Hulu again, marking the fourth increase in four years. Starting September 23, ad-free Disney+ will cost $21.49 per month, up 13% from $18.99. The ad-free Hulu plan also jumps to $21.49, while the ad-free bundle rises $2 to $21.99 MediaPlayNews. Ad-supported plans see smaller increases—the standalone plans rise 50 cents to $12.49, while the bundle stays at $12.99 MediaPlayNews.
The timing is strategic. Disney+ will release Pixar's "Toy Story 5" on the same day prices go up, offering subscribers a major new title as the hikes take effect TheWrap. Existing customers will see the new rates on their next billing date after September 23 GVWire.
Disney+ Plan Now Rivals Netflix's Priciest Tier
At $21.49, Disney's ad-free plan is closing the gap with Netflix's premium subscription. Netflix's top-tier plan costs $26.99 monthly and includes 4K video plus access on multiple devices GVWire. Disney's ad-free tier has nearly doubled in price since 2023, when it cost $10.99 TheWrap. The streaming giant is squeezing more revenue from each subscriber while remaining cheaper than Netflix's highest option.
Bundles Designed to Keep Customers From Leaving
Disney is using bundled pricing to discourage cancellations. The Disney+/Hulu Premium Bundle costs $21.99, only 50 cents more than each service alone. This strategy makes canceling less attractive—subscribers pay almost the same for two services. The ad-supported bundle remains $12.99, unchanged MediaPlayNews. Bundle pricing is a key tool for streaming companies fighting churn in an increasingly crowded market.
Fourth Hike in Four Years Reflects Streaming's Profit Push
This marks Disney's fourth price increase in as many years. The entertainment division containing Disney+ posted 64% higher operating income in August's quarterly results, driven partly by subscription growth AppleInsider. As streaming companies mature, they're shifting from growth-at-all-costs to profitability. Higher prices risk alienating price-sensitive viewers, but Disney's bundle strategy aims to minimize cancellations while boosting revenue per user.
Europe Gets Ad Warning on All Subscription Tiers
Disney recently updated its European subscriber terms to clarify that ads may appear before and after playback on all subscription levels AppleInsider. U.S. subscribers had not received a matching agreement update at the time of reporting. This shift hints at Disney's future direction—even premium tiers may include ads to diversify revenue streams and offset the cost of content production.
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