Disney (DIS) Hikes Subscription Prices for U.S. Streaming Plans Despite Kimmel Controversy - Bold Move or Desperate Gambit?
Streaming subscribers brace for impact as Disney flexes pricing power.
The Price Hike Playbook
Disney+ and Hulu users face higher monthly bills starting immediately. The entertainment giant pushes forward with aggressive monetization despite recent public relations turbulence.
Content Versus Cost Calculus
Subscribers now weigh whether the magic kingdom's content justifies the premium. Families face tough choices as entertainment budgets stretch thinner than ever.
Wall Street's Silent Approval
Investors quietly cheer the margin expansion while consumers absorb another inflationary hit. Because nothing says 'magical experience' like quarterly earnings beating expectations.
The streaming wars enter their nickel-and-dime phase—and Mickey's not playing nice.
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Disney+ Raises Prices for U.S. Subscription Plans
Disney+ is raising the price of its ad-supported plan by $2 to $11.99 per month. Furthermore, the price of the Disney+ premium plan with no ads will increase by $3 to $18.99 per month, and the annual subscription will now be priced at $189.99 per year, reflecting a jump of $30.
The price of Disney’s Hulu service will also increase, with its ad tier priced $2 higher at $11.99 per month. Furthermore, ESPN Select’s price will increase by a dollar to $12.99. The new prices will be effective from October 21.
Disney has been increasing its subscription prices to enhance the profitability of its streaming business. Notably, Disney’s combined streaming business, which comprises Disney+, Hulu, and ESPN+, reported a profit for the first time for the third quarter of Fiscal 2024. Meanwhile, Disney’s rivals Apple (AAPL) and Netflix (NFLX) also raised prices for their streaming plans this year.
Is DIS Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Strong Buy consensus rating on Disney stock based on 20 Buys and three Holds. The average DIS stock price target of $136.70 indicates about 22% upside potential from current levels. DIS stock is essentially flat on a year-to-date basis.
