Why Disney+ Increased Its Prices

By Jessica Lerner 

Today, Disney+ is hiking its rates.

As first announced in August, the increase means subscribers will see prices rise from $7.99 a month to $10.99 per month for the ad-free tier.

However, you can avoid the price hike by switching to the streamer’s new ad-supported tier, which also launches today, for $7.99 per month. That’s exactly what one-quarter of current U.S. subscribers plan to do, according to new research from Kantar.

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There won’t be any pricing changes for the Disney Bundle, which includes Disney+, Hulu and ESPN+.

The Disney Bundle Plan featuring Disney+ and Hulu with ads will cost $9.99 per month. The Bundle with Disney+, Hulu, and ESPN+ with ads is $12.99 per month. The Legacy plan featuring Disney+ (no ads), Hulu (with ads) and ESPN+ with ads will cost $14.99 per month, and the Premium plan of Disney+ (no ads), Hulu (no ads) and ESPN+ (with ads) will cost $19.99 per month.

Hulu recently raised its rates, with subscribers paying $7.99 per month with ads and $14.99 per month without ads.

When it comes to streamers, price hikes are unfortunately becoming more common.

Netflix and Prime Video announced price hikes at the start of this year. Additionally, Warner Bros. Discovery CFO Gunnar Wiedenfels hinted at a possible rate hike for HBO Max and Discovery+ during a Goldman Sachs conference in mid-September, calling both streamers “fundamentally underpriced.”

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