Walt Disney announced on Tuesday its plan to raise prices for its primary Disney+ streaming service in the United States next month, aiming to boost profits from its digital platforms. Starting on October 21, the ad-supported Disney+ plan will see a $2 increase to $11.99 per month, while the ad-free premium tier will go up by $3 to $18.99 monthly. Annual premium subscriptions will also rise by $30 to $189.99. Bundled packages, which include Disney+ with Hulu and ESPN+, will experience price hikes as well.
The price adjustments are not limited to the U.S. but also extend to Canadian subscribers. A notification email sent to a Disney+ subscriber in Canada revealed that the cost of a premium subscription will surge from $119.99 to $159.99 on October 28. Further details on other potential price changes in Canada are yet to be confirmed by Disney+.
Disney+ was launched in November 2019 and has been gradually increasing its prices as part of a broader strategy to transform streaming into a growth engine and offset losses. This move marks the fourth consecutive year of subscription price hikes, with the company’s streaming business turning profitable for the first time last year. Despite the price adjustments, Disney is facing challenges, including public backlash and accusations of suppressing free speech following the temporary removal of late-night host Jimmy Kimmel from the airwaves.
Protests occurred outside Disney’s headquarters in California in response to Kimmel’s suspension, leading to calls for a boycott of Disney+ and Hulu services, both owned by Disney. The backlash gained traction, prompting some notable figures to support the boycott. Kimmel has since been reinstated, with his show, “Jimmy Kimmel Live!”, returning to television. In his recent monologue, Kimmel addressed issues related to free speech and clarified his previous remarks that led to his suspension.
Disney has not yet responded to inquiries regarding the price increases in Canada. The company’s decision to raise subscription fees aligns with its strategy to offer users more original content and quality programming.