Disney Raises Streaming Prices Up to 25%, Adds New Channels
(Bloomberg) -- Walt Disney Co. is raising the prices of its streaming services, with the lowest-cost offering, Disney+ with advertising, climbing 25% to $9.99 a month.
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Disney+ without ads will increase 14% to $15.99, according to an announcement Tuesday. A bundle that includes Disney+ and Hulu, both with ads, rises 10% to $10.99 a month. The increases take effect Oct. 17. Hulu and ESPN+ will also raise prices.
The shares rose as much as 4.7% to $91.91 in afternoon trading in New York.
As part of the change, the company is adding programming choices to Disney+, including channels that stream continuously. Starting Sept. 4, Disney+ subscribers will be able to watch ABC News Live and a playlist of preschool programming. Later this year, premium subscribers will get channels devoted to documentaries, action films and pop culture.
In recent months, rival online video services including Netflix Inc., Comcast Corp.’s Peacock and Warner Bros Discovery Inc.’s Max have also announced plans to raise prices. Disney increased its streaming prices by as much as 27% a year ago.
Disney, like other traditional media giants, is transitioning to streaming from broadcast and cable TV, where audiences are shrinking and ad sales are declining.
The company has vowed its streaming business will be profitable by its fourth fiscal quarter. Management is scheduled to report third-quarter financial results on Wednesday.
(Updates with shares in third paragraph.)
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