Disney+ will increase its prices: how does the giant justify this increase?


Mathilde Rochefort

May 14, 2023 at 1:33 p.m.

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Disney+ © © JOCA_PH / Shutterstock

© JOCA_PH / Shutterstock

When announcing its quarterly review, Disney+ announced a further price increase for its ad-free offer. It should take place during the year.

Streaming platforms are trying to adapt to the difficulties they are facing, after exponential growth during the pandemic period.

Hulu content is coming to Disney+

Disney CEO Bob Iger has made an important announcement on his US streaming service. Disney + will integrate before the end of the year all the content offered by Hulu, another platform 66% owned by Disney. It clarifies that standalone offerings for all Disney platforms, including ESPN+, will continue.

Iger justifies this choice by the ” advertising potential of the combined platform. So Hulu’s content will be added to Disney+’s ad-free offering, which should drive up its prices. The cost of subscription with advertising, launched last year by the company, should remain unchanged. At this time, it’s unclear how this decision will affect Disney’s streaming offerings outside of the United States.

Disney+ © © Mika Baumeister / Unsplash

© Mika Baumeister / Unsplash

A loss of 4 million subscribers

This is a major backpedal from Iger. In February, the CEO said that Disney would focus more on the content of its flagship franchises. He finally went back on his remarks by calling them ” a little hard “.

Disney’s division that includes its streaming offering continues to be loss-making, losing $659 million in the January-March quarter. This is still much less than the 845 million dollars that analysts had anticipated. The service nevertheless lost 4 million subscribers, a declining figure that can be attributed to the rise in subscription.

This nevertheless enabled the firm to increase its average revenue per subscription by 13%. In total, The Walt Disney Company reported revenue of $21.82 billion, up 13% from the same period a year earlier.

Source : CNBC

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  • Disney classics in one place
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It was highly anticipated and did not disappoint. Disney+ is not a Netflix rival, but a complementary offer, geared particularly towards children and more broadly towards the family. The Star universe, meanwhile, remains the poor relation of the platform and will require several years of work to catch up with its competitors.

It was highly anticipated and did not disappoint. Disney+ is not a Netflix rival, but a complementary offer, geared particularly towards children and more broadly towards the family. The Star universe, meanwhile, remains the poor relation of the platform and will require several years of work to catch up with its competitors.



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