By Thomas Buckley, Bloomberg
Walt Disney Co. is hiking the cost of its flagship Disney+ streaming service without advertising by $3 to $19 a month.
The cost of a plan with ads will rise by $2 to $12 monthly, the company said. The new pricing will go into effect Oct. 21.
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Media companies have been raising prices of their streaming services to wring more profit after years of investment in the businesses. Disney has targeted $1.3 billion in operating income at its streaming unit this fiscal year, up from an earlier forecast of $1 billion.
Earlier this year, Disney said it would continue improving the profitability of its online video platforms. The price increases taking effect in October had been planned for several months and are unrelated to the recent suspension and reinstatement of the Jimmy Kimmel Live! show, a company spokesperson said.
In its most recent earnings statement in August, Disney said it had added 1.8 million new subscribers to its flagship Disney+ service in the fiscal third quarter, bringing the total to 128 million. The company, which is facing slowing subscriber growth for its namesake platform, has been integrating its Disney+ and Hulu streaming services into a single app and including a larger slate of programming, such as ABC News.
Disney introduced a new ESPN streaming service priced at $30 per month to house its sports programming, and is bundling its services together at discounted rates. The cost of some of its bundled plans also increased.
The Burbank, California, based entertainment giant increased the price of Disney+ last year by as much as 25%.
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