Major streaming service hikes prices by 25 percent
Disney is raising the price of most of its streaming plans in America - a year after the last hike . The prices will take effect from October 17 and affect Disney+, Hulu and ESPN - the three streaming services run by the entertainment giant.
Disney+ with adverts rise to $9.99 from $7.99 a month - a 25 per cent increase.The advert-free tier will go up $2 to $15.99. Meanwhile, at Hulu the tier with adverts also goes up $2 to $9.99. The advert free version rises $1 to $18.99.
The price hikes seem aimed at pushing customers to The Disney Bundle - which includes both Disney+ and Hulu with adverts for $10.99, after a $1 rise. That works out at only a dollar more than getting either service on their own. ESPN+ with ads also rises by $1 to $11.99.
News of the rise broke around 1pm ET, and was thought to have been leaked by the company ahead of its latest quarterly earnings report tomorrow. Soon after, streaming fans took to social media claiming they would cancel their subscriptions - fed up with price rises.
Disney is the latest to raise prices as TV streamers seek to turn a profit on businesses that until now have lost money. They have been willing to spend on big budget shows - but offer cut-price subscriptions - in a bid to lure in customers. But investors now want to see a return.
Peacock rolled out prices rises from July 19. The $2 a month increase took the price for its standard service - confusingly called ‘Premium’ to $7.99. The annual cost rose $20 from $59.99 to $79.99.
Both work out as a huge 33 percent price rise. At the end of June, it emerged that Paramount+ Essential will rise by $2 to $7.99 for new customers - also a 33 percent price rise. Current customers pay the same. Prices rises take effect on August 20.
Earlier in June, Warner Bros. Discovery raised the price of its ad-free Max subscription for the second time in year. The $1 price rise to $16.99 a month for the ad-free tier took effect last month for new subscribers.
The 'ultimate' ad-free option, which offers 4k streaming and the ability to run four accounts at the same time, will also be raised by a $1 to $20.99. Spotify also announced last month that the cost of its Individual ad-free premium subscription plan in the US will go up by $1 a month to $11.99.
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