Deep down in our hearts, we know that one day streaming services would eventually become the new cable. And according to Deadline, this harrowing reality is just around the corner as Disney just announced an upcoming price increase for their ad-free standalone service, as well as their bundle with Hulu. Though the ad-free versions of both Disney and Hulu will remain unchanged as far as pricing goes, subscribers will see a price increase for the ad-free version of both platforms.
Disney+’s ad-free tier will increase by $3 a month in October.
For Disney+ and Hulu alike, their ad-supported service tiers will remain unchanged. That is to say, Disney and Hulu will stay at their current price points if you’re okay with commercials and promotions. On the ad-free side, however, Disney and Hulu will both thrust a three dollar increase on their customers, resulting in a $13.99 monthly cost for Disney, and a $17.99 monthly cost for Hulu.
How To Save
To get the most bang for your buck, the “Duo Premium” offering will include ad-free versions of both Disney+ and Hulu for $19.99 per month, which doesn’t seem to bad when you consider the fact that purchasing both services separately will run you over $30 a month. And despite the extra cost, Disney CEO Bob Iger is optimistic that this is the move to make to ensure profitability. Since Disney+ launched their ad-supported tier last December, the streaming platform has attracted 3.3 million subscribers.
In fact, 40 percent of Disney’s new subscribers have opted for the ad-supported version. Iger has also suggested that Disney’s efforts to boost revenue will take a page from the Netflix playbook, and look into cracking down on account sharing sometime in 2024. When you consider the initial success that Netflix has seen from spearheading such an initiative, it only makes sense that Disney would follow suit.
These initiatives should come as no surprise, given the current media landscape. When you consider how disproportionate profits are against subscriber gains, it becomes clear that revenue has to come from somewhere. In other words, the original monthly fee of $6.99 for Disney+ upon its inception should never have been considered sustainable given how low the price point was.
Fortunately for Disney and Hulu subscribers who are currently on the ad-supported tiers, they won’t see an increase for their current services, for now at least. But still, as streaming companies continue to find new ways to increase revenue, consumers will have to pay a premium to continue to enjoy their favorite movies and series without being interrupted by advertisements.
The original monthly fee of $6.99 for Disney+ upon its inception should never have been considered sustainable given how low the price point was.
Just like cable companies have offered bundle packages in the past, streaming services are following a similar revenue model, and we’re presented with two options: watch commercials, or pay more to avoid them.
Though we’re not sure when Disney will crack down on password sharing, we do know that the above mentioned price increases will go into effect on October 12, 2023. And as more original series can only be found exclusively on platforms like Disney and Hulu, you’re going to have to ask yourself one very important question: what’s more important, ad-free content, or a lower price point?