Disney to Raise Disney Plus Subscription Fees in U.S. for Fourth Consecutive Year

Scheduled to Take Effect Starting October 21

Yonhap News Agency

The Walt Disney Company, which has recently been embroiled in controversy over alleged infringements on "freedom of expression," will raise subscription fees for its streaming service Disney Plus (+) in the United States next month.

According to Disney's announcement on the 23rd (local time), starting October 21, the Disney Plus ad-supported plan will increase by $2 to $11.99 per month, while the ad-free plan will rise by $3 to $18.99 per month. The bundled subscription for Disney Plus and Hulu will go up by $2 per month, and the bundle including Disney Plus, Hulu, and ESPN will increase by $3 per month. The annual premium subscription fee will rise by $30 to $189.99.

Disney also raised its streaming subscription prices by $1 to $2 last October. When the service launched in November 2019, the monthly fee was $6.99, but the company has raised prices every year except for 2021.

Reuters reported that the subscription fee hike is part of efforts to improve the performance of Disney's digital platform division. Disney Plus has been pursuing a strategy to turn its streaming business from a loss into a growth engine. This division recorded a profit for the first time last year.

During its quarterly earnings announcement last month, Disney hinted at the possibility of raising streaming prices and projected that the number of Disney Plus subscribers would see a slight increase in the next quarter. However, according to economic media outlets such as CNBC, after Disney announced a suspension of the ABC talk show "Jimmy Kimmel Live"-which it owns-citing host Jimmy Kimmel's comments regarding the recent assassination of conservative activist Charlie Kirk, some viewers responded by canceling their Disney Plus subscriptions.

Amid these developments, Disney announced on the 22nd that it had decided to resume Kimmel's talk show on the night of the 23rd, just six days after the suspension. In contrast, Nexstar and Sinclair, the largest owners of local broadcast networks in the United States, have stated that they will continue to suspend broadcasts. Nexstar said in a statement, "We will maintain this decision until we are confident that all parties are committed to fostering a respectful and constructive dialogue."