From Ars Technica · · 1m 20s
Disney+ and Hulu raise prices again after doubling profits
Disney's streaming services hit customers with their fourth price increase in four years, even as the company's streaming profits surge.
In brief
Disney's streaming services hit customers with their fourth price increase in four years, even as the company's streaming profits surge. Disney is raising prices on its streaming services while profits double, following Netflix's playbook to prioritize profitability over subscriber growth. Originally reported by Ars…
Disney+ and Hulu hike prices again
Disney+ and Hulu's ad-free plans jump 13 percent to $21.50 per month. Bundle prices also increase, with some rising by up to $4 monthly.
Fourth price hike in four years
Disney+ has raised prices in December 2022, October 2023, October 2024, and now September 2026. Hulu has followed a similar pattern since 2022.
Now pricier than Netflix
Disney+ and Hulu's ad-free plans at $21.50 exceed Netflix's standard $20 plan. Only Netflix's $27 premium tier with 4K costs more.
Profits more than doubled
Disney+ and Hulu's combined operating income jumped 116 percent to $712 million, while revenue grew 11 percent. Netflix reported $4.19 billion in operating income.
Chasing Netflix's profitability
Disney is prioritizing profits over subscriber growth, following Netflix's successful shift away from racing for users. Bundles may also reduce cancellations.
Disney still trails Netflix
Disney+ has 131.6 million subscribers and Hulu has 59.7 million, compared to Netflix's 325 million. But Disney's streaming profits are growing fast.
The big picture
Disney is raising prices on its streaming services while profits double, following Netflix's playbook to prioritize profitability over subscriber growth.
