Disney+ subscription price to rise 13% from September 2023

Walt Disney Co is raising the price of its Disney+ streaming service by 13 percent starting in late September 2023. Customers who pay for the ad-free version of Disney+ will pay $2.50 more each month, bringing the total to $21.49. Disney sent notices to subscribers as early as September 23 to let them know about the change.

The price increase makes Disney+ closer in cost to Netflix's ad-free plan, which charges $26.99 per month. Netflix's plan also includes 4K video quality and allows streaming on several devices at the same time. Disney wants its premium plan to compete more directly with what Netflix offers.

Disney also raised prices on its Hulu streaming service by the same $2.50 amount for the ad-free version. However, if customers subscribe to both Disney+ and Hulu together in a bundle without ads, the price only goes up by $2.00, to $21.99 per month. That bundle deal costs just 50 cents more than paying for each service on its own, making it a good value for many families.

For people who don't mind watching ads, Disney+ and Hulu will each cost $12.49 per month on their own, which is 50 cents more than before. The bundle that includes ads from both services stays the same at $12.99 per month. Disney keeps its bundled plans affordable because customers are less likely to cancel when they have access to more than one service.

Many big entertainment companies are raising streaming prices right now. Disney, Netflix, Apple, Comcast, and Paramount Skydance are all charging more in order to make their businesses more profitable. In August 2023, Disney announced that its entertainment division saw its operating income jump 64 percent compared to the same time last year. More people are subscribing, and the streaming side of the business is earning strong profits.

Disney has also been making leadership changes inside the company. In September, the company named Adam Smith as the sole chair of its direct-to-consumer unit, which runs all of its streaming services. Disney also hired Karandeep Anand as its new chief technology officer, a brand-new role at the company. He reports directly to Disney's CEO, Josh D'Amaro, who wants to modernize the way Disney connects with its customers.

D'Amaro has big plans for the future of Disney+. He told investors in August that Disney+ will grow beyond just movies and TV shows. Starting in spring 2027, the platform will also offer merchandise, games, and other experiences. This means Disney+ could one day be a place where fans buy products or play games connected to their favorite Disney stories.