Get ready to pay MORE for your Disney+ subscription.
©Disney
Disney+ has seen a few price increases and changes over the past few years, most recently with the introduction of the ad-supported tier (versus ad-free) and the price increases that came with those changes. And now it seems more price increases are on the way.
On May 10th, 2023, Disney held its earnings call (and released its earnings report) for Q1 of Fiscal Year 2023. That earnings call and report gave us some big updates on the number of Disney+ subscribers, Hulu content, and more.
During the call, Iger noted that the pricing changes they’ve implemented recently have proven “successful,” so Disney will be raising the price for the ad-free Disney+ tier (specifically) by the end of the year. So, if you’ve got the ad-free Disney+ service, expect to pay MORE for it soon.
©Disney
During the latest earnings call, Disney shared that the number of domestic Disney+ subscribers has actually DECREASED (ever so slightly) domestically (in the US and Canada) and at Hotstar.
©Disney
But the average monthly revenue per paid subscriber for the quarter actually INCREASED 20% at domestic Disney+, increased in international subscribers (excluding Hotstar), and decreased at Hotstar.
©Disney
Overall, Disney shared that the “improvement at Disney+ was due to higher subscription revenue and a decrease in marketing costs.” That higher subscription revenue actually came from “subscriber growth and increases in retail pricing.”
In other words — the increase in Disney+ pricing has helped and it looks like Disney will be looking to implement that again.
©Disney
In response to a question about Disney+, Iger shared that in his opinion they do have “pricing elasticity for Disney+” and they feel that there’s going to be “substantial growth in digital advertising.” According to Disney, there’s an opportunity for them to really lean into the ad-supported tier.
Thus far, Disney hasn’t detailed exactly what the increased price for ad-free Disney+ will be or when it’ll take effect, but we’ll be on the lookout for updates. Stay tuned for more news.
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The post NEWS: PRICE INCREASE Announced for Disney+ first appeared on the disney food blog.