The sixth increase in six years! The monthly fee for Disney (DIS.US) Disney+ without ads jumped 13% to $21.49

The Zhitong Finance App learned that The Walt Disney Company (DIS.US) is raising the prices of various streaming media subscriptions in the US market. This is the sixth time in six years that the company has raised prices to boost the profits of the streaming media business, which is critical to Disney's future.

Disney revealed on Wednesday that the monthly fee for the ad-free version of the flagship streaming service Disney+ will rise 13%, or $2.50 to $21.49, confirming previous reports. This price increase brings the high-end Disney+ package closer to the price of similar packages sold by Netflix. Netflix's ad-free, 4K resolution, and multi-device access service costs $26.99 per month.

The ad-free version of Hulu will also increase by $2.50; the price of the Disney+ and Hulu ad-free bundled subscription will increase by $2 to $21.99, which is only 50 cents more than subscribing to the two services separately.

The monthly fee for a separate Disney+ and Hulu subscription with ads will be $12.49, an increase of 50 cents. The monthly fee for the Disney+ and Hulu bundle package with ads will remain unchanged at $12.99.

Like other carriers, Disney has always offered attractive bundles because consumers are less likely to unsubscribe when they are able to use multiple services.

Entertainment giants including Netflix, Apple, Comcast, and Paramount Sky Dance are all increasing streaming subscription prices to increase profitability. Disney+ prices have continued to rise steadily since the initial ad-free edition was launched at $6.99 in 2019.

In August, Disney announced that the third-quarter operating profit of the entertainment division, which includes film studios, non-sports TV networks, and Disney+, increased 64% year-on-year, mainly driven by increased subscription volume and double-digit profit margins in the online video business.

Earlier this month, Disney appointed Adam Smith as the sole chairman of Disney's direct-to-consumer business division, which covers the company's entertainment streaming services. Management has initiated operational restructuring and achieved results in increasing the usage time of Disney+ users.

Disney also appointed Kalandeep Anand as the newly established Chief Technology Officer to report to CEO Josh Damaro. Damaro has made it a priority to modernize the company's consumer interactions. In a conference call with investors last month, Damaro said that starting in the spring of 2027, Disney+ will develop into a platform that offers products, games, and experiences in addition to movies and TV shows. “Toy Story 5,” the latest film in the popular Pixar series, went live on the platform on Wednesday.