We just got some BIG news from the Walt Disney Company.

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On August 7th, 2024, Disney held its earnings call for the third quarter of fiscal year 2024. This is usually when we get some major reveals about how the company is doing financially when it comes to theme parks, Disney+, and more. And, according to Disney’s CFO, the latest price increases on streaming will be to thank for that.

We recently learned that Disney+ would see yet another price increase in the near future, and during a CNBC interview, Disney CFO Hugh Johnston gave some insight as to why this is so important for the company.

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Going into effect on October 17th, 2024, the ad-supported version of Disney+ will go up $2 to $9.99 monthly, the Premium version with no ads will also rise by $2 to $15.99 monthly, Hulu with ads will follow the trend of raising by $2 to go up to $9.99 per month, and the ad-free Hulu plan will go up $1 to $18.99 per month.

Not only that, but the Disney triple-play bundles will also increase in price by $2. The Disney Bundle Trio Basic plan will go up to $16.99 per month while the Disney Bundle Trio Premium plan will be $26.99 monthly.

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And, with the news that Disney’s streaming division has finally reached its goal of profitability for the very first time — it seems as though these price increases are working. Johnston said on CNBC, “Our expectation is we’re going to continue to go up from here.”

When asked about the continued price increases, Johnston remarked, “People tend to focus on price, but value is what the consumer perceives.” Essentially, Disney is saying that it’s adding so much value to its service that people are still willing to pay an increased price. “We do feel like we’ve earned that pricing in the marketplace.” 

He continued, saying that even with price increases, the company is still expecting significant growth. “The climb is going to be inexorably upward…We think we’ve got a terrific value proposition and a great broad brand portfolio that makes it really attractive to consumers.”

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Disney’s direct-to-consumer streaming (DTC) which includes Disney+, Hulu, and ESPN+, saw $6.4 billion in revenue, with a $47 million profit. Last year’s results for the same quarter lost $512 million.

CEO Bob Iger said, “This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance.”

But, unfortunately for consumers, that increased profit also means increased prices.

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The current monthly plans will look like the following in October:

• Disney+ Basic (With Ads) — $9.99 (old: $7.99)
• Disney+ Premium (No Ads) — $15.99 (old: $13.99)
• Hulu With Ads — $9.99 (old: $7.99)
• Hulu With No Ads — $18.99 (old: $17.99)
• ESPN+ — $11.99 (old: $10.99)
• Disney Bundle Trio Basic (Disney+, Hulu with ads, ESPN+) — $16.99 (old: $14.99)
• Disney Bundle Trio Premium (Disney+, Hulu with ads, ESPN+) — $26.99 (old: $24.99)
• Hulu + Live TV (With SVOD Ads) — $82.99 (old: $76.99)
• Hulu + Live TV (No SVOD Ads) — $95.99 (old: $89.99)

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In the meantime, we’ll be on the hunt for the latest Disney news that could have an impact on you, so make sure you stay tuned to the Disney Food Blog for more!

Read More About the Disney+ Price Increases Here

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