Disney+ is increasing its subscription price by 27%, will target password sharers

[midian182]

A hot potato: Do you enjoy watching the ad-free version of Disney+ so much that you'd be willing to pay more? It's a decision subscribers will soon have to make as the company is increasing the price of its popular service by 27%. It's also hiking the ad-free price of Hulu. If that's not bad enough, Disney revealed it is "actively exploring ways to address account sharing."

Starting from October 12, the ad-free version of Disney+ is increasing by $3 per month to $13.99 while the ad-free version of Hulu is also going up, by 20% from $14.99 to $17.99. The ad-supported tiers of both services will stay the same price. It means Disney has almost doubled the price of Disney+ since it arrived in 2019.

Bundle prices are also going up: Disney+ and Hulu without ads and ESPN+ with ads will go to $24.99 per month from $19.99 per month. All three services with commercials will be $14.99 per month, up $2 per month. Disney+ and Hulu with ads stays at $9.99, and a new offering combining both products without ads launches on September 6 for $19.99 per month.

It was less than a year ago when Disney increased the price of Disney+ from its original attractive price of $6.99. CEO Bob Iger said the company didn't see a "significant churn or loss of subs" in 2022 following that first price hike.

In addition to pushing its prices closer to Netflix, Disney also appears to be copying its rival's password-sharing crackdown. Iger said a "significant" number of customers share their passwords, adding that the company has the "technical capability" to monitor sign-ins and that it will address the issue next year.

"While it is likely you'll see some impact in calendar 24, it's possible that [...] the work will not be completed within the calendar year," Iger said. "But we certainly have established this as a real priority, and we actually think that there's an opportunity here to help us grow our business."

The announcement comes as Disney+ subscribers in the US and Canada fell slightly, dropping from 46.3 million to 46 million. Its ad-supported service, meanwhile, now has 3.3 million subscribers; about 40% of new subs opt for this tier. Disney's India-based Hotstar service has lost a massive 12 million subs since April, though that was mostly due to it losing the rights to the Indian Premier League (IPL) cricket games.

Disney aims to make its streaming business profitable by September 2024. The division lost $512 million in the third quarter, which probably explains why it feels the need to increase prices. Iger seems to think subscriber losses following the hike will once again be insignificant, but the second price increase in less than 12 months might prove him wrong, especially at a time of economic uncertainty when people are reining in their spending.

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https://www.techspot.com/news/99734-disney-targets-password-sharing-increases-subscription-price-27.html

 

[Dr Roboto]

As if Disney is not struggling enough lately. Do they think that raising prices is the solution?

Well it looks like I am going to have to cancel another streaming service. Disney+ has been very disappointing over the last year. IMO, the adult-focused series have been poorly written and short in episodes. Movies have been slow to get to it also. I have been contemplating canceling it, and I guess raising the price will likely be enough to push me over the edge.

Trying to stop sharing like Netflix did, and I guarantee I will cancel it. I pay for # of streams, not my location.

 

[DukeJukem]

Keep raising the prices and you'll just feel the effects of piracy more.

 

[Dimitriid]

I sure like the timing: 'Yeah let's just increase the money we demand from our viewers at the exact same time an extremely visible strike from basically all writers and all actors is taking place precisely over our unwillingness to share this profits with them, profits we now demand even more of while declaring stuff like writer demands being unreasonable and letting it known that we intent to break the strike by starving out the people that create the shows you now have to pay us more money to watch'

Like is there any way to read this but 'Bob Iger wants to fill out his pockets as much as he can before he has to give up the money to the people who actually makes the shows and the quality of his streaming service falls off a cliff without writers or actors for months now not producing shows'?

 

[Loli Pop Carbon]

So glad I never and will never have subscription of anything.

 

[m4a4]

Well, first of all, thanks to all those people who caved to Netflix when they cracked down on password sharing. I know all the "good news" surround that "success" was closely watched by every other big streaming service, and now we're going to see more of them "safely" implement it. All because they know that streaming customers (in general) are pushovers.

Nothing like asking for more money for less. But hey, maybe this will eventually push people to more convenient ways to get content

 

[wiyosaya]

Typical business model these days. Give your stuff away, get captive audience, raise prices.

The trouble is, now with the plethora of streaming services, we are getting into the price range that drove people away from cable/satellite to streaming. IMO, that's what streaming services like Disney+, Paramount+, HBO Max, and others, did not understand, and still do not understand. I think it likely that at least Disney+ will lose customers because of this.

Personally, I'm on a Hulu/Disney+ special from last November at $4.99/mo and I still have a Netflix subscription. When the Hulu/Disney+ deal is up, I'll likely cancel. Hulu/Disney+ just doesn't have enough content to keep my interest especially since they have been slow to add new seasons of series like Daredevil, Luke Cage, Jessica Jones and others.

IMO, Disney bit off way more than it could chew, but I doubt subscribers will be willing to suck up what is arguably Disney's problem in way underestimating the market vs cost for providing their content on their own streaming service. As I see it, they should have just left that content on Netflix.

 

[wiyosaya]

Well, first of all, thanks to all those people who caved to Netflix when they cracked down on password sharing. I know all the "good news" surround that "success" was closely watched by every other big streaming service, and now we're going to see more of them "safely" implement it. All because they know that streaming customers (in general) are pushovers.

Nothing like asking for more money for less. But hey, maybe this will eventually push people to more convenient ways to get content

I think there are other reasons Netflix is a survivor, and I don't think Disney+ shares enough of those reasons to get away with this unaffected.

 

[talhariaz5193]

Hey there,

This news about Disney+ and Hulu's price hikes and the potential crackdown on password sharing is quite a hot topic in the streaming world. The increase in prices for the ad-free versions is quite significant, especially considering it's the second price hike in less than a year. I've really enjoyed using Disney+ for its amazing content, but the higher costs do make me rethink my subscription.

It's interesting to see Disney aiming to make its streaming business profitable by 2024, and I can understand their need to cover costs, but it's a bit disappointing as a subscriber. I'm curious to see how this will impact the overall streaming landscape and whether other platforms might follow suit.

As for the password-sharing crackdown, it's understandable that companies want to ensure fair usage, but it does raise concerns about privacy and monitoring. I hope they find a balance that respects user privacy while also addressing the issue.

All in all, it's a lot to consider – from the price changes to the potential impact on subscribers. Let's see how things unfold in the coming months.

Best regards,
Abdullah

 

[Jrfeimst2]

As if Disney is not struggling enough lately. Do they think that raising prices is the solution?

Well it looks like I am going to have to cancel another streaming service. Disney+ has been very disappointing over the last year. IMO, the adult-focused series have been poorly written and short in episodes. Movies have been slow to get to it also. I have been contemplating canceling it, and I guess raising the price will likely be enough to push me over the edge.

Trying to stop sharing like Netflix did, and I guarantee I will cancel it. I pay for # of streams, not my location.

I agree with you 100 percent. If I pay for 5 streams it should not matter where they are in the world. Greedy jerks.

 

[Mr Majestyk]

So glad I never subscribed in the first place, now I don't have to unsubscribe. Sucks that Netflix lost Marvel to Disney. Worst thing that ever happened, Disney now owning the Marvel and Star Wars Universe.

 

[captaincranky]

Excuse my OTA indoor antenna ignorance, but what the hell is on "Hulu" anyway? I've watched ad after ad, and still can't figure it out.

I'm in decade eight, and I can't stand kidz. So "the Disney channel" can suck it too.

 

[captaincranky]

All in all, it's a lot to consider – from the price changes to the potential impact on subscribers. Let's see how things unfold in the coming months.

Yeah, they'll probably lose some subscribers. Hopefully it will make them tighten their belts a bit, and stop contributing huge sums of money to the GOP, and Ron DiSantis in particular.