Disney+ isn’t done raising its prices (yikes!)
Of all of the streaming service price hikes that happened last year, Disney+’s seemed to be the most severe. The ad-free tier jumped 38% from $7.99/month to $10.99/month. Well, according to Bloomberg, Disney+ might be raising its prices again.
Disney hiked up the price of its streaming service when it introduced its ad-supported tier. People were not pleased, but those in the business world would have seen it coming from a mile away. For as popular as the platform is, it’s still not profitable.
Disney+ is not done raising its prices
So, nobody likes price increases, and Disney+ fans definitely felt the sting of this one. However, it looks like the price could be set to jump yet again. According to a report from Bloomberg, Disney CEO Bob Iger spoke at an investor conference earlier in the month. He stated that the company’s pricing strategy for Disney+ was “off”.
The report states that “When he says the pricing strategy was ‘off,’ he doesn’t mean the price was too high.” That’s scary, as Iger said that the company is going to adjust the prices accordingly. This means that users should prepare for some increase in price some time down the road.
At this point, we have no idea when this will happen, how much the price will increase, if it will affect the ad-supported tier, or if it will affect other services like Hulu. If you’re worried about this, we don’t expect the price hike to happen soon. Disney just raised the price a few months ago. Raising it again may result in rolling service cancelations.
That’s what the company does not want to do considering that the company hasn’t seen an increase in cancelations since it hiked up its price. A report from Antenna states that about 6.2% of users canceled their accounts before the price hike. As of February 2023, that dropped to about 5%. This means that not many people were turned away by the price increase.
So, at this point, we’re all just wondering when the company will raise its price. We will keep you updated on this story as it develops.