Disney to raise streaming prices as business, is raising prices for its streaming services as its business flags. The company plans to raise the price of its ad-free Disney+ service in the US from $7.99 per month to $9.99 per month starting on September 6, 2023. The price of the ad-supported Disney+ service will remain at $7.99 per month.
Disney is also expanding the availability of its ad-supported Disney+ service to Canada, the UK, and Europe starting in November 2023. The price of the ad-supported Disney+ service in these countries will be €8.99 per month.
The price increases are a sign that Disney is struggling to grow its streaming business. The company has lost subscribers in recent quarters, and it is facing increasing competition from other streaming services like Netflix, HBO Max, and Amazon Prime Video.
Disney is hoping that the price increases will help to offset the costs of producing original content for its streaming services. The company has invested heavily in original content, and it is planning to release a number of high-profile projects in the coming months, including the new Star Wars series “Andor” and the Marvel series “She-Hulk.”
It remains to be seen whether the price increases will be successful in boosting Disney’s streaming business. However, the company is clearly feeling the pressure from its competitors, and it is willing to take steps to increase its revenue.
Here are some of the reasons why Disney is raising its streaming prices:
- Increased competition: Disney is facing increasing competition from other streaming services, such as Netflix, HBO Max, and Amazon Prime Video. These services are constantly adding new content and raising their prices, which is putting pressure on Disney to do the same.
- Cost of content: Disney is spending a lot of money on original content for its streaming services. The company is producing new TV shows, movies, and documentaries for Disney+, Hulu, and ESPN+. This content is expensive to produce, and Disney needs to raise prices to offset these costs.
- Low subscriber growth: Disney’s streaming services have not been growing as fast as the company had hoped. In the first quarter of 2023, Disney+ added only 2.9 million subscribers, which was below analyst expectations. This slow growth is putting pressure on Disney to raise prices to generate more revenue.
It is important to note that Disney is not the only streaming service that has raised prices recently. Netflix, HBO Max, and Amazon Prime Video have all raised their prices in the past year. This is a sign that the streaming industry is becoming increasingly competitive, and companies are under pressure to raise prices in order to generate more revenue.