Disney+ and Hulu subscriptions are getting more expensive
Wall Street is showing signs of recovery, buoyed by a strong round of corporate earnings reports. E-commerce giant Shopify has delivered a robust 21 percent increase in second-quarter revenue, surpassing expectations. Meanwhile, ride-sharing service Lyft has not only exceeded sales forecasts but has also achieved a net profit for the first time in its history.
In other significant news, Walt Disney’s streaming division has reached a profitability milestone. For the first time since the launch of Disney+ in 2019, the company’s streaming bundle—encompassing Disney+, Hulu, and ESPN+—reported a quarterly operating profit of $47 million.
CEO Bob Iger’s executive team commented, “The combination of exceptional content and a broad brand portfolio has been pivotal to our success as we build streaming into a profitable growth business for the company over the long term. We were pleased to see our combined streaming business turn a profit in the third quarter ahead of our guidance, and we remain on track for further profitability improvements in Q4.”
Disney attributes its streaming success to a surge in subscribers driven by the release of popular film franchises. The company has reported a notable increase in new sign-ups as fans eagerly catch up on content before the latest movie installments hit theaters.
However, this success comes with a price: Disney+ will see a price increase starting in October. The monthly subscription for Disney+ with ads will rise from $7.99 to $9.99, while the ad-free version will go from $13.99 to $15.99. Hulu will also see a price hike, with the ad-supported version increasing to $9.99 and the ad-free option climbing to $18.99. ESPN+ will see a modest increase to $11.99.
To remain competitive with Netflix, Disney is introducing a new bundle that includes Max from Warner Bros. Discovery, priced at $30 a month.
