The Walt Disney Company has announced that it will be raising prices for its Disney+ streaming service, as shown in its third-quarter earnings report. Beginning on October 12, the ad-free subscription will increase by $3 to $13.99 per month. This is the second price increase in less than a year, with the previous increase occurring in December. Additionally, Disney owns a majority stake in Hulu, and prices for its ad-free offering will also increase by $3 to $17.99 per month. A new ad-free package, combining Disney+ and Hulu, will be available for $19.99. However, the ad-supported subscription tier for Disney+ will remain unchanged at $7.99 per month.

Disney’s CEO Bob Iger stated that these pricing decisions were made to encourage more Disney+ subscribers to choose the ad-supported option. Despite the price hikes, Disney reported that its streaming business is still not profitable, although the revenue loss has narrowed in the third quarter. In the US and Canada, streaming subscribers have declined, with a 1% decrease in domestic subscribers reported for two consecutive quarters. On the other hand, international subscribers experienced a 2% growth in the same period.

Disney+ is also exploring ways to address the issue of password sharing, potentially implementing measures by 2024. Overall, Disney’s fiscal third-quarter earnings showed slightly lower revenue than expected, with most divisions experiencing a decline in revenue. However, the company’s parks, experiences, and products division saw a 13% increase in revenue, largely due to growth in international parks like Shanghai Disney Resort and Hong Kong Disneyland Resort. There has been a slowdown in attendance at Disney World Resort in Florida, attributed to waning post-Covid pent-up demand for travel.

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