Disney+ and Hulu will increase their ad-free pricing in October and will also crack down on password sharing.

Disney+ and Hulu will increase their ad-free pricing in October and will also crack down on password sharing.

Disney Raises Prices for Ad-Free Streaming Services

Disney+

Disney has announced its plans to increase the price of its ad-free streaming services, Disney+ and Hulu, effective from October 12th. This news was revealed during the company’s recent earnings call. As of the mentioned date, the ad-free Disney+ plan will be priced at $13.99 per month, while the ad-free Hulu plan will cost $17.99 per month.

Currently, the ad-free Disney+ and Hulu plans are priced at $10.99 and $14.99 per month, respectively. It’s worth noting that when Disney+ first launched three years ago, it was priced at $6.99. We can see that the price for ad-free access has more than doubled since then.

To sweeten the deal for its subscribers, Disney is offering an ad-free bundle that includes both Hulu and Disney+ for $19.99 per month. This bundle pricing is $12 cheaper than having separate subscriptions. As for the Disney+, Hulu, and ESPN bundle, currently priced at $19.99 per month, it will be increasing to $24.99 per month, providing access to all three services.

While the pricing updates are limited to the ad-free plans, it’s worth mentioning that the rates for Disney’s ad-supported plans will remain the same. Disney+ with ads will continue to be $7.99 per month, aligning with the price for the ad-supported Hulu plan. Furthermore, the ad-supported bundle, including Disney+, Hulu, and ESPN, will be available for $9.99 per month.

In a move similar to Netflix, Disney has also announced plans to curb password sharing from 2024 onwards. Disney CEO Bob Iger stated that the company will be implementing strategies to prevent password sharing, prioritizing account security and ensuring fair usage of their services.

The decision to increase prices and restrict password sharing comes after the streaming division of Disney incurred a loss of $512 million in the third fiscal quarter of 2023. However, it is important to note that this is an improvement from the $1.1 billion loss reported in the same quarter of the previous year. Despite the financial challenges, Disney continues to enjoy strong subscription growth, with over 105 million Disney+ subscribers. In fact, during the last quarter, the platform gained an additional 800,000 subscribers.

Disney’s price adjustments for its streaming services reflect the expanding market and the costs associated with creating and delivering high-quality content. As streaming becomes the primary method of consuming media, companies like Disney are making strategic decisions to ensure sustainable growth and profitability. While subscribers may experience an increase in their monthly bills, they will also benefit from continued access to a range of exclusive and popular content on Disney+ and Hulu.