Disney will introduce subscription increases and consider blocking password sharing. These moves are intended to improve the results of the streaming platform, which is currently generating multi-million losses.
From October, Disney+ will cost 27 percent in the US. more. Hulu, the second platform of the concern, will become more expensive by 20 percent. All this to chase competitors and look for profit, because Disney’s flagship platform, although popular, brings losses.
New Disney+ prices
Starting October 12, the ad-free version of Disney+ will cost $14 a month, up from $11 today. The ad-free version of Hulu goes up to $18.
This is the second price increase for Disney+ in less than a year – and underscores the company’s drive to make its streaming business profitable by September 2024. The cheapest plans, Disney+ and Hulu with ads, will remain at $8 per month.
In comparison, Disney’s biggest competitor Netflix charges $15.50 a month for an ad-free service, while Warner Bros. Discovery Inc. prices the Max service at $16.
Disney+ generates losses
On Wednesday, Disney said its streaming loss across all platforms halved to $512 million in the fiscal third quarter, significantly less than management had forecast three months ago.
The company ended the period with 105.7 million Disney+ core customers, up from 104.9 million three months earlier. The figure does not include Hotstar in Asia.
Password sharing is disabled
Disney CEO Bob Iger warned on Wednesday that Disney is “actively exploring ways” to address the account sharing issue.
“Later this year, we will begin updating our subscription agreements with additional terms regarding our sharing policies, and we will introduce tactics to increase monetization in 2024,” said Iger.