New York: Walt Disney Co. is raising prices on several Disney+ and Hulu streaming plans in the United States, with subscribers being notified about the changes from Wednesday, according to people familiar with the matter.
Ad-free Disney+ plan to see biggest increase
The flagship Disney+ plan without advertisements is set to rise by $2.50 to $21.49 per month, representing an increase of about 13%, according to the report.
The ad-free Hulu plan will also increase by the same amount. Meanwhile, the ad-free Disney+ and Hulu bundle will rise by $2 to $21.99 a month.
For subscribers who choose advertising-supported plans, Disney+ and Hulu will cost $12.49 per month individually, up by 50 cents. However, the combined Disney+ and Hulu bundle with advertisements will remain unchanged at $12.99 a month.
The latest increases come as major streaming companies continue adjusting subscription prices as they seek to increase revenue and improve the profitability of their digital entertainment businesses.
Disney expands focus on streaming business
Disney has been placing greater emphasis on its streaming operations. On September 17, the company appointed Adam Smith as chairman of Direct-to-Consumer for Disney Entertainment, giving him responsibility for the global entertainment streaming business, including Disney+ and Hulu.
Disney has also been expanding the role of its streaming platforms beyond traditional films and television. The company recently said Disney+ and Hulu were expanding their video podcast offerings, while its leadership has outlined plans for more integrated entertainment and consumer experiences.
The new pricing will make Disney’s premium streaming plans more expensive for subscribers, while the ad-supported bundle remains at its existing monthly price.