- Disney is raising the price of ad-free Disney+ and Hulu.
- Disney CEO Bob Chapek suggested in an exclusive interview a price increase may also be coming at theme parks if demand stays strong.
- Chapek is hoping the Disney brand will be able to support price increases.
Disney is raising the price of ad-free Disney+ and Hulu.
Another major American company is raising prices again, but this time, don’t blame inflation.
Disney is increasing the price of its streaming products and signaled that a price hike could be in the works at its theme parks as well. On Wednesday, the company said the price of Disney+ without ads is jumping from $3 per month to $10.99 starting Dec. 8. Hulu with ads will increase by $1 per month to $7.99, and Hulu without ads will jump by $2 per month to $14.99.
Disney CEO Bob Chapek suggested in an exclusive interview
“We read demand. We have no plans right now in terms of what we’re going to do, but we operate with a surgical knife here,” Chapek stated. “It’s all up to the consumer. If consumer demand keeps up, we’ll act accordingly. If we see a softening, which we don’t think we’re going to see, then we can act accordingly as well.”
Instead of blaming the rising price of supplies, labor, and gasoline, Disney is rationalizing the will increase primarily based on the consistency of the recognition of its merchandise. Disney stated Wednesday that Disney+ added 15 million new subscribers last quarter, blowing out expectations. It additionally stated it expects additional progress to core Disney+ (excluding India’s Disney+ Hotstar) subsequent quarter past the 6 million it added in its fiscal third quarter.
Chapek is hoping the Disney brand will be able to support price increases.
Instead of blaming the rising cost of materials, labor, and gas, Disney is rationalizing the increases based on the consistency of the popularity of its products. Disney said Wednesday that Disney+ added 15 million new subscribers last quarter, blowing out expectations. It also said it expects further growth to core Disney+ (excluding India’s Disney+ Hotstar) next quarter beyond the 6 million it added in its fiscal third quarter.
Raising prices on the back of strong demand isn’t new for Disney. The price of theme park tickets has climbed for decades. During its most recent quarter, the company posted a 72% revenue increase in its parks, experiences and products division, topping $7.4 billion. Per capita spending at domestic parks rose 10% and is up more than 40% compared to fiscal 2019.