Disney Raises Streaming Prices, Takes Cost-Cutting Measures
Walt Disney Company today announced it will be raising the prices of its streaming services, Disney+ and Hulu, effective October 1, 2023. The ad-free tier of Disney+ will increase from $7.99 to $9.99 per month, while the ad-supported tier will increase from $6.99 to $7.99 per month. Hulu’s no-ad plan will increase from $11.99 to $12.99 per month.
The price increases are the first for Disney’s streaming services since they launched in 2019. Disney said that the increases are necessary to offset rising content costs and to continue to invest in new content.
The price increases come at a time when Disney is facing increasing competition from other streaming services, such as Netflix, HBO Max, and Amazon Prime Video. Disney is also facing challenges in its theme park business, which has been hurt by the COVID-19 pandemic.
In addition to raising prices, Disney is also taking steps to cut costs. The company has announced that it will be laying off 30,000 employees, or 6% of its workforce. Disney is also cutting back on its spending on marketing and other expenses.
The price increases and cost-cutting measures are an attempt by Disney CEO Bob Iger to reassure investors that the company is on track to achieve its financial goals. Iger has said that he expects Disney to be profitable in its streaming business by 2024.
The price increases and cost-cutting measures are likely to have a mixed impact on Disney’s streaming business. Some consumers may be willing to pay more for Disney’s streaming services, while others may switch to a different service. Investors will be watching closely to see how the price increases and cost-cutting measures impact Disney’s financial performance in the coming quarters.
Here are some additional details about the price increases and cost-cutting measures from Disney:
- The price increases will take effect on October 1, 2023.
- Disney is also launching a new ad-supported bundle that includes Disney+, Hulu, and ESPN+ for $19.99 per month.
- Disney is laying off 30,000 employees, or 6% of its workforce.
- Disney is cutting back on its spending on marketing and other expenses.
The price increases and cost-cutting measures are a sign that Disney is committed to its streaming strategy, even in the face of increasing competition. Disney is betting that its strong content library and brand will be enough to attract and retain subscribers, even as prices rise. It remains to be seen if Disney’s gamble will pay off.
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