Disney+ and Hulu subscriptions are getting more expensive
Wall Street is experiencing a recovery, buoyed by encouraging corporate earnings reports. E-commerce giant Shopify reported a robust 21% increase in second-quarter revenue, exceeding expectations. Meanwhile, Lyft not only surpassed sales forecasts but also achieved a net profit for the first time in its history.
Disney Streaming Service Reaches Profitability
In another notable milestone, Walt Disney’s streaming service has turned profitable for the first time since the launch of Disney+ in 2019. The Disney streaming bundle, which includes Disney+, Hulu, and ESPN+, reported a quarterly operating profit of $47 million.
CEO Bob Iger’s executive team stated, “The combination of exceptional content and a broad brand portfolio is the key 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 profitable in the third quarter ahead of our guidance, and we remain on track for that profitability to improve in Q4.”
Subscriber Growth Linked to Film Success
Disney attributes its streaming success to positive spillover from its film business, noting a surge in new subscribers eager to catch up on content ahead of sequels and new installments in popular franchises.
Price Increases for Streaming Services
However, subscribers should prepare for price increases. Starting in October, the monthly rate for Disney+ with ads will rise from $7.99 to $9.99, while the ad-free version will increase from $13.99 to $15.99. Hulu’s pricing will also see adjustments, with the ad-supported version going to $9.99 and the ad-free option rising to $18.99. Additionally, ESPN+ will increase by a dollar to $11.99.
New Bundle for Competitive Edge
To enhance its competitive stance against Netflix, Disney is introducing a new bundle that includes Max from Warner Bros. Discovery, priced at $30 per month.
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