Disney Raises Streaming Prices, Joining Competitors in Hiking Subscription Costs
Disney is increasing the prices of its streaming services, following in the footsteps of competitors such as Apple and Netflix, which have also raised their subscription costs this year. The price hike is set to take effect on October 21, with the cost of an ad-supported Disney+ plan rising from $9.99 to $11.99 per month, while an ad-free plan will increase to $18.99 per month, up from $15.99.
The entertainment giant announced the price changes on Tuesday, which will also affect bundled plans. A Disney+ and Hulu plan with ads will cost an extra $2, rising to $12.99 per month, while the ad-free subscription will cost $19.99. Additionally, a subscription offering Disney+, Hulu, and ESPN Select with ads will increase from $16.99 to $19.99 per month, while the ad-free package will cost $29.99 per month, up from $26.99.
Disney+ Subscriber Growth and Streaming Trends
Disney’s flagship Disney+ platform has continued to grow, with the addition of 1.8 million new subscribers in the third quarter, bringing the total number of subscribers to 128 million. This growth is reflective of the broader trend of increasing streaming adoption, with 46% of Americans now watching TV and movies on streaming platforms, compared to 23% on cable and 19% on legacy networks, according to Nielsen.
The price hike is likely a response to the increasing competition in the streaming market, with other major players such as Apple, Comcast-owned Peacock, and Netflix also raising their subscription prices this year. Paramount+, a streaming platform owned by Paramount Skydance, is another competitor in the market, which is the parent company of CBS.
Expert Analysis and Context
According to Megan Cerullo, a New York-based reporter for CBS MoneyWatch, the price increase is a sign of the evolving streaming landscape. Cerullo, who covers small business, workplace, health care, consumer spending, and personal finance topics, notes that the hike is likely a result of the growing costs of content creation and acquisition, as well as the increasing competition in the market.
For more information on the Disney streaming price hike and its implications for the streaming market, readers can visit the original article on CBS News.
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