In the streaming industry, money seems to affect quality as well as the number of subscribers. Earlier it was reported that 8 million new subscribers had joined Disney+ while Netflix accounted for the loss of a large number of its customers. But Disney+ with Hulu and ESPN are confirmed to be raising their streaming prices despite the additional customers.
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A price increase despite more subscribers!
Despite 8 million new subscribers in the last quarter and an additional 14 million in the third quarter, it seems that Disney + is still at a loss. Previous Disney+ prices were $7.99/month, which the company has increased to $10.99/month!
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The price increase would be changed and charged from October this year. An ad-supported version is also available for Hulu which will cost up to $7.99/month from its current price of $6.99/month. An ad-free subscription to Disney+, Hulu, and ESPN with live TV would therefore cost an average subscriber about $82.99/month.
Fans have taken to Twitter to offer their thoughts and suggestions regarding the recent price hike.
How on earth can a record surge in subscribers derail them by driving up prices?
– Central mancave (@wookie_is) August 10, 2022
To be fair, no one thought Disney’s original awards would ever last.
— Daddy’s kidding Panda (@TrashPandaFTW) August 10, 2022
Hello Torrents my old friends…. I’m still here to chat with you…
— Thijs van der Tuin (@thijsvandertuin) August 10, 2022
I just canceled my D+…
— Function Scarlet 🐱🎮 (@FunctionScarlet) August 10, 2022
So they too like to lose subscribers.
— Respect each other (@jbarinas) August 10, 2022
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Rising prices: greed or honesty?
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According to a Disney executive, the rise in prices is due to the fact that, although the number of subscribers reached 221 million subscribers across its services, the company still reported a loss compared to the budget it has set for these services.
According to Disney, the growing amount of production costs as well as programming costs are much higher lately. That, along with the sports broadcasting rights for ESPN, made the business a loss.
The following is a statement released by Disney:
“Direct-to-consumer revenue for the quarter increased 19% to $5.1 billion and operating loss increased $0.8 billion to $1.1 billion. operating profit is due to a higher loss at Disney+, a lower operating profit at Hulu and, to a lesser extent, a higher loss at ESPN+.”
Disney also reported a decline in its estimated subscriber count from 230-260 million for 2024 to somewhere between 215-245 million subscribers.
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Source: The Edge
