New Delhi, Aug 11: Walt Disney Co. announced it will raise pricing for those who want to watch Disney+ or Hulu without ads after surpassing Netflix Inc. with a total of 221 million streaming subscribers.
When it starts to offer a brand-new option that includes adverts at the existing price in December, the media behemoth will increase the monthly cost of Disney+ without advertising by 38% to $10.99. On Wednesday, Disney stock increased 6.9% to $120.15 in after-hours trading.
In 2017, Disney bet its future on developing a streaming service to compete with Netflix as viewers shifted away from traditional cable and broadcast television in favour of internet viewing.
Disney has surpassed Netflix in terms of total streaming subscribers five years later. The debut of the “Star Wars” television series “Obi-Wan Kenobi” and the Marvel film “Ms. Marvel” resulted in a 14.4 million increase in Disney+ subscribers, exceeding the consensus expectation of 10 million analysts surveyed by FactSet.
At the end of the June quarter, Disney reported having 221.1 million streaming customers across Hulu, ESPN+, and other platforms. According to Netflix, there are 220.7 million streaming members.
Beginning on December 8, Disney will offer an ad-supported version for $7.99 per month, the same price it currently charges for the ad-free edition, in an effort to draw in new users. Depending on the plan, Hulu’s prices will increase from $1 to $2 per month in December. On Wednesday, the business decreased its long-term subscriber prediction for Disney+ consumers and cited the loss of cricket rights in India as the reason.
By the end of September 2024, Disney anticipates having between 215 million and 245 million Disney+ subscribers overall. This is less than the 230 to 260 million that Disney had anticipated.