Disney+ Subscription Fee Hike for Users Announced
Updated Disney+ Pricing Strategy
Disney is following in Netflix's footsteps by boosting its monthly subscription cost in the U.S., setting it at $8 per month. This adjustment was announced at their investor's day presentation on Thursday, complete with a sneak peek at a plethora of new content heading to the platform.
Starting from March 26, 2021, existing U.S. subscribers can expect their monthly fee to ascend from $7 to $8. Disney's package deal, which includes Disney+, ad-supported Hulu, and ESPN+, will also experience an increase from $13 to $14 a month. However, whether subscribers in other nations will undergo price hikes for Disney+ or the Disney Bundle remains uncertain at this point. We've reached out to Disney for clarification on this matter and will update accordingly.
Despite the premature nature of this price increase after just a year in the market, 2020 has proven mostly fruitful for streaming services, with the pandemic prompting folks to stay indoors more frequently. Disney+, in particular, has drawn a substantial following, surpassing the 86 million subscribers worldwide mark since its launch in November 2019. This milestone, interestingly, took Netflix several years to achieve post-pivot to streaming.
During Thursday's presentation, Disney CEO Bob Chapek remarked that Disney+'s growth surpassed initial expectations, which set a goal of achieving between 60 and 90 million subscriptions by 2024.
"Disney+ has clearly outshone our projections," said Chapek.
Capitalizing on Disney+'s success from the get-go, Disney aims to reap the benefits by investing additional revenue in upcoming Marvel, Pixar, and Star Wars content. This content pipeline is expected to offset the bump in costs that subscribers might experience on their wallets.
With numerous new series and films from Marvel, Pixar, and Star Wars on the horizon, Disney intends to keep its subscribers from losing interest and exploring the myriad streaming content alternatives available. It appears Disney's best strategy for retaining customers is to continuously reinvest its earnings in offerings that distinguish its service from its rivals.
Regarding future price hikes in countries other than the U.S., things are less clear-cut. Historically, Disney has adjusted prices in varying regions to accommodate content updates and maintain viability. As a result, subscribers in other nations should brace themselves for possible price increases, particularly if new content offerings are introduced in their region.
In Australia and New Zealand, for instance, Disney+ recently announced a price increase coinciding with the addition of ESPN. Similarly, the UK experienced a price hike in October, following the service's launch. These developments suggest that Disney may adopt a similar approach in other regions, consistent with its strategy of expanding global content.
In summary, while an immediate call-out on future price hikes outside the U.S., Australia, and the UK remains absent, subscribers across the globe should remain vigilant for any local updates pertaining to adjustments in the service's pricing structure.
- To boost its revenue, Disney plans to invest extra funds into upcoming Marvel, Pixar, and Star Wars content, a move aimed at mitigating potential costs felt by subscribers due to price hikes.
- Disney's strategy for keeping subscribers engaged and retaining them is by continuously reinvesting its earnings in exclusive content offerings that set its service apart from competitors.
- In line with its strategic expansion, Disney may follow a similar pattern in other regions, likely adjusting prices in accordance with new content offerings and the need to maintain service viability.
- subscribers in countries other than the U.S., Australia, and the UK should anticipate potential future price increases as Disney continues to launch and update its global content offerings.
