Disney+ is raising the price of its ad-free plan by $3 per month, from $10.99 to $13.99, starting on October 12, 2023. The price of the ad-supported plan will remain at $7.99 per month.
The price increase comes as Disney+ faces increasing competition from other streaming services, such as Netflix, HBO Max, and Apple TV+. Disney+ has been adding new content at a rapid pace, but it has also been losing subscribers. In the most recent quarter, Disney+ lost 200,000 subscribers, the first time it has lost subscribers since the service launched in 2019.
Disney is hoping that the price increase will help to offset the cost of adding new content and marketing the service. The company is also planning to launch a new ad-supported tier in the United States in late 2023, which is expected to be cheaper than the ad-free plan.
The price increase is likely to be unpopular with some Disney+ subscribers, but it is not unexpected. Disney has raised the price of its streaming services in the past, and it is likely to continue to do so in the future.
Here are some of the reasons why Disney is raising the price of its ad-free plan:
- To offset the cost of adding new content: Disney has been investing heavily in new content for Disney+, including original series, movies, and documentaries. This content is expensive to produce, and Disney needs to raise prices in order to recoup its investment.
- To compete with other streaming services: Disney+ faces increasing competition from other streaming services, such as Netflix, HBO Max, and Apple TV+. These services are all raising their prices, and Disney needs to do the same in order to remain competitive.
- To generate more revenue: Disney is a publicly traded company, and it is under pressure from shareholders to generate more revenue. Raising prices on Disney+ is one way to do that.
The price increase is likely to be unpopular with some Disney+ subscribers, but it is a necessary step for the company to continue to grow and invest in new content.