Disney+ to raise subscription prices for fourth consecutive year

A file photo the logo for The Walt Disney Company appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File)

Walt Disney said on Tuesday it will raise prices for its flagship Disney+ streaming service in the United States next month, as the entertainment giant pushes to bolster profits from its digital platforms.

Starting Oct. 21, the ad-supported Disney+ plan will increase by US$2 to $11.99 per month, while the ad-free premium tier will rise $3 to $18.99 a month. Annual premium subscriptions will jump $30 to $189.99.

Bundled packages combining Disney+ with Hulu and ESPN+ will also see price hikes, according to the company’s website.

Disney is facing heightened public scrutiny following the recent controversy over the temporary removal of Jimmy Kimmel Live! from ABC, which sparked calls to even boycott the company’s services.

Disney+ launched in November 2019 at $6.99 per month, gradually raising its prices since then as part of a broader strategy to stem losses and turn streaming into a growth engine. Its streaming business had achieved profitability for the first time last year

It is the fourth consecutive year Disney has raised its subscription prices. The company imposed a 38% price hike in December 2022, followed by further increases in October of 2023 and 2024.

(Reporting by Kritika Lamba in Bengaluru; Editing by Krishna Chandra Eluri)