Sixth price hike in six years! Walt Disney Company (DIS.US) Disney+ ad-free monthly fee jumps 13% to $21.49

The Walt Disney Company (DIS.US) is raising prices for several of its streaming subscriptions in the U.S. market, its sixth price hike in six years, aimed at boosting profitability in the streaming business that is crucial to the company's future. Disney disclosed on Wednesday that the ad-free monthly fee for its flagship streaming service Disney+ will rise 13%, or $2.50, to $21.49, confirming earlier reports. The increase brings the premium Disney+ tier closer in price to a comparable plan sold by Netflix, Inc. Netflix's ad-free service, which supports 4K resolution and multi-device access, costs $26.99 a month. The ad-free version of Hulu will rise by the same $2.50; the ad-free Disney+ and Hulu bundle will increase by $2 to $21.99, just 50 cents more than subscribing to the two services separately. The ad-supported Disney+ and Hulu standalone subscriptions will each cost $12.49 a month, up 50 cents. The ad-supported Disney+ and Hulu bundle will remain unchanged at $12.99 a month. Like other operators, The Walt Disney Company has kept bundle pricing attractive, because consumers are less likely to cancel when they have access to multiple services. Entertainment giants including Netflix, Apple Inc., Comcast Corporation Class A, and Paramount Skydance are all raising streaming subscription prices to improve profitability. Disney+ prices have risen steadily since the ad-free version launched at $6.99 in 2019. In August, The Walt Disney Company reported that operating profit at its entertainment divisionwhich includes the film studios, non-sports television networks, and Disney+rose 64% year over year in the third quarter, driven mainly by subscriber growth and double-digit margins in the online video business. Earlier this month, The Walt Disney Company named Adam Smith as the sole chairman of its direct-to-consumer business unit, which covers the company's entertainment streaming services. Management has launched an operational restructuring and has made progress in increasing time spent by Disney+ users. The Walt Disney Company also appointed Kalandip Anand to the newly created role of chief technology officer, reporting to CEO Josh D'Amaro. D'Amaro has made modernizing the company's consumer engagement a priority. On a call with investors last month, D'Amaro said that starting in spring 2027, Disney+ will evolve into a platform that offers merchandise, games, and experiences in addition to movies and TV shows. The latest film in the popular Pixar franchise, "Toy Story 5," launched on the platform on Wednesday.