The increases, expected to take effect later this year, will raise the monthly cost of ad-free Disney+ by US$3, or roughly 27 per cent, to almost US$14. The cost of ad-free Hulu will likewise rise US$3 to almost US$18 -- a 20 per cent hike that will make it more expensive than the most popular ad-free tier at Netflix.Iger spoke following Disney's release of mixed earnings for its fiscal third quarter ended July 1.
The Disney CEO acknowledged that the price hikes are intended to steer consumers toward cheaper ad-supported versions of these services, whose subscription prices are not changing. The advertising market for streaming is "picking up," he said, noting that it's healthier than traditional TV ads. "We're obviously trying with our pricing strategy to migrate more subs to the advertising supported tier.
While a narrowing in Disney's streaming losses is heartening, he argued, the improvements owed more to dramatic cost-cutting than organic growth, suggesting that Iger still doesn't have a plan for putting Disney on a sound footing. Disney's theme parks are widely viewed by industry experts as a critical component of the Burbank, California-based company's business. To that end, Iger has prioritized reconnecting with the Disney theme park die-hards and restoring their faith in the brand. Shortly after Iger's return, changes rolled out at U.S. parks.
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