Why Disney Is Increasing Their Streaming Prices
As Disney continues its push towards streaming profitability, the company has raised the price of several of its streaming offerings, including the ad-free versions of Diseny+ and Hulu.
![](https://mickeyblog.com/wp-content/uploads/2023/06/2023-apple-vision-pro-bob-iger-disney-plus-5-1024x569.jpg)
![](https://mickeyblog.com/wp-content/uploads/2023/06/2023-apple-vision-pro-bob-iger-disney-plus-5-1024x569.jpg)
Photo: Apple
Originally announced in August, the price hikes went into effect on October 12.
The ad-free version of Hulu now costs $18 per month, up from $15 per month. Ad-fee Disney+ meanwhile has seen its price increase from $11 per month (or $110 a year) to $14 per month (or $140 a year).
Disney Bundle Price Increases
The Disney bundles also saw two of its five packages get a price increase. The Trio Basic bundle, which includes ESPN+, and ad-supported versions of Disney+ and Hulu now costs $15 per month, up from $13 per.
![Hulu](https://mickeyblog.com/wp-content/uploads/2022/03/Hulu-tv.jpg)
![Hulu](https://mickeyblog.com/wp-content/uploads/2022/03/Hulu-tv.jpg)
Photo: THIERRY CHESNOT/GETTY IMAGES
The Trio Premium bundle, meanwhile, which includes ad-free versions of Hulu and Diseny+ along with ESPN+ saw an increase from $20 to $25 per month.
Disney Is Trying to Change Consumer Habits
Interestingly, the price for ad-based versions of Disney+ and Hulu did not increase. The reason for this is simple. By increasing prices, Diseny’s primary goal isn’t to make more money from ad-free subscribers, it is to drive those subscribers to ad-based versions of the app.
![Disney Bundle](https://mickeyblog.com/wp-content/uploads/2023/04/Disney-Bundle.jpg)
![Disney Bundle](https://mickeyblog.com/wp-content/uploads/2023/04/Disney-Bundle.jpg)
Photo: Hulu
At the dawn of the streaming era, companies like Disney hoped that ad-free streaming services could eventually be profitable. What the company has realized as it loses billions of dollars in streaming, is that streaming needs advertising to make money.
Disney’s Hulu + Live streaming service, for example, is able to bring in a $91.80 ARPU (average revenue per user). Due to how lucrative advertising is on the streaming service, the monthly fees that users pay Disney are essentially pure profit.
![streaming](https://mickeyblog.com/wp-content/uploads/2021/11/2021-11-19-12_27_06-Hulu-to-Raise-Price-of-Live-TV-Subscription-Add-Disney-and-ESPN-–-The-Hollywo-1024x572.png)
![streaming](https://mickeyblog.com/wp-content/uploads/2021/11/2021-11-19-12_27_06-Hulu-to-Raise-Price-of-Live-TV-Subscription-Add-Disney-and-ESPN-–-The-Hollywo-1024x572.png)
Photo: Hulu
After years of bleeding money in streaming, Disney believes that it has a path toward profitability. That path, however, requires users to switch to the ad-based versions of the streaming apps.
![Disney Hulu](https://mickeyblog.com/wp-content/uploads/2018/03/Disney-Hulu.jpg)
![Disney Hulu](https://mickeyblog.com/wp-content/uploads/2018/03/Disney-Hulu.jpg)
Source: Disney
While the additional profit from ad-free subscribers is a bonus, Disney’s real goal is to drive its consumers to ad-based Disney+ and Hulu.