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Disney+ and Hulu raise prices by up to 13 percent after doubling profits

arstechnica.com141 points171 comments
Screenshot of Disney+ and Hulu raise prices by up to 13 percent after doubling profits

Disney+ and Hulu raised subscription prices across several tiers, with standalone ad-free plans that support 4K and HDR jumping 13% from $19 to $21.50 per month, and ad-supported plans increasing from $12 to $12.50. Bundles changed as well: the Disney+ and Hulu no-ads bundle rose from $20 to $22 while the $13 ad-supported bundle stayed the same; bundles that include ESPN Select moved from $20 to $22 with ads and from $29 to $33 without. Hulu + Live saw a $10 monthly increase. Those new retail prices put Disney+ and Hulu ad-free tiers above Netflix’s most popular $20/month non-ad tier (Netflix’s ad tier is $9/month and its $27/month premium adds 4K/HDR).

The price moves follow Disney reporting an 11% revenue gain for Disney+ and Hulu and a 116% year-over-year jump in operating income to $712 million, which the company is using to push toward streaming profitability after repeated price increases since launch (Disney+ launched in 2019; Hulu in 2008). Netflix remains larger and more profitable by scale - 325 million subscribers and $4.19 billion operating income - so Disney’s increases are positioned to grow margins and encourage bundle adoption to reduce churn and smooth exposure to an unpredictable advertising market.

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