Major changes are underway for the Disney bundle, as prices are set to escalate again. In its recent Q3 earnings call, Disney CEO Bob Iger unveiled a dramatic shift in its pricing strategy for its flagship streaming services: Hulu, Disney+, and ESPN+. Though the revamped model introduces an enticing duo bundle for Hulu and Disney+ fans, it spells significant cost hikes for all three platforms.
What’s New in the Pricing Scheme?
Effective October 12, Disney+ subscribers of the ad-free version will witness a price rise, pushing the monthly charge from $10.99 to $13.99. Similarly, Hulu fans are not spared. The cost for Hulu will increase in the same proportion, ascending from $14.99 to $17.99. Interestingly, the ad-supported plans, which seem to be Disney’s focal point for consumer engagement, will retain their current pricing for both platforms.
This move comes hot on the heels of last December’s adjustment. If we journey back, in just one calendar year, Hulu’s premium plan has surged by $5 monthly. Meanwhile, Disney+ has seen an increment of $6, further distinguishing it from its newer ad-supported counterpart. For ESPN+ enthusiasts, the increase is modest, with the subscription escalating from $9.99 to $10.99.
Hulu + Live TV will not be left untouched. Subscribers can expect both the ad-supported and ad-free tiers to climb by $7, settling at $76.99 and $89.99, respectively. But here’s the silver lining – Disney’s unveiling of the new duo premium bundle. This enticing offer allows users to relish both Disney+ and Hulu’s ad-free services at a mere $19.99, translating to savings of over $10 compared to individual purchases. Those eager to switch to this new plan can do so starting September 6. Worth noting, existing bundles remain unaffected, with the ad-supported Hulu and Disney+ package stable at $9.99, and the comprehensive trio bundle featuring all three services at $24.99 amidst the reshuffle.
Disney’s Ad-Supported Expansion
Turning eyes internationally, Disney has big plans. The entertainment giant intends to extend its ad-supported blueprint to Canada and select EMEA markets. This extension, which kicks off on November 1, will introduce a new standard tier and a standard-with-ads variant for Disney+. The proposed pricing structure starts at £4.99/€5.99 per month in EMEA regions and $7.99/month in Canada. However, these markets won’t escape the forthcoming price augmentations. Come December, premium subscribers will have to swap plans or brace for the uptick.
Disney’s ad-supported strategy is evidently paying dividends. Since its inception, a whopping 3.3 million subscribers have embraced it. Joe Earley, the President of Direct-to-Consumer at Disney Entertainment, voiced his optimism:
“The strong momentum of our ad-supported plans in the U.S. showcases the essence of offering consumers choice, flexibility, and value. Our ambition is to amplify this offering globally, particularly in Europe and Canada, coupled with the launch of our new premium duo bundle this Fall.”
However, with new packages and more choices, the undeniable fact remains: prices are ascending. For some time, Iger has championed the notion that pricing realignment was pivotal to match the perceived value of Hulu, Disney+, and ESPN+. This move has sparked discontent, especially as industry writers and actors continue to strike, demanding better remuneration. Iger has branded such demands as unfeasible.
Moreover, echoing Netflix, Disney is eyeing measures to curtail password sharing, hoping to usher in more bona fide subscribers. Iger, in the call, hinted that come 2024, Disney will adopt strategies to counter unauthorized sharing.
In Conclusion
Disney’s forward trajectory with its streaming platforms remains ambitious and progressive. Yet, with price elevations and potential crackdowns on sharing, only time will tell how consumers will react. Stay connected with us for more updates on Disney’s future endeavors in the streaming landscape.
