Disney+ Warns Subscribers, Another Major Price Hike Coming

in Disney, Entertainment

Walt Disney Company CEO Bob Iger in front of Cinderella Castle

Credit: Inside the Magic

Disney+ subscribers should be aware of some major changes happening to the platform this week.

The Disney+ platform is home to beloved classics like The Lion King (1994) and Beauty and the Beast (1991), as well as more recent hits like Frozen (2013) and Moana (2016). Disney+ not only caters to fans of animated films but also boasts an impressive collection of live-action movies, including the immensely popular The Mandalorian from the Star Wars universe and the Marvel Cinematic Universe’s TV series like WandaVision and Loki, which just dropped Season 2 on the streaming platform.

Disney+ logo with Iron Man, Darth Vader, Elastigirl, Moana
Credit: Disney+

One of Disney+’s standout features is its commitment to family-friendly entertainment. In addition to movies and TV shows, Disney+ also includes documentaries, behind-the-scenes features, and exclusive content that provides a deeper look into the magic of Disney’s creative process. Disney+ has also invested heavily in original programming. With new shows and movies being added regularly, subscribers can look forward to fresh and exciting content.

Though the streaming platform has quite a number of subscribers, it has struggled particularly over the last year. Disney has introduced price hikes, which have run away some of its subscribers, and the company has continued to tweak its strategy with the streaming platform in an attempt to be more profitable.

Disney CEO Bob Iger has emphasized the importance of streaming to the company, underscoring it as his “number one priority” since taking on the role. While Disney+ has been a significant addition to Disney’s content portfolio, it has faced financial challenges.

“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger said earlier this year. “Later this year, we will begin to update our subscriber agreements with additional terms on our sharing policies, and we will roll out tactics to drive monetization sometime in 2024.”

All of the different Disney+ titles surrounding the logo
Credit: Disney

Some of those updates to agreements included password crackdowns, which are already starting to be implemented. Analysts have noted that U.S. subscribers could start to feel the effects of Disney’s password crackdowns beginning next year, following in the footsteps of Netflix, which is seen as the top streaming platform. As a matter of fact, some of these changes are already beginning in other places around the world. 

Inside the Magic previously reported that starting November 1, Disney+ Canada will be the first country to crack down on account sharing. The Disney+ Help Center now states:

“You may not share your account and subscription outside of your household. “Household” means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.”

Amid these changes, Disney+ has struggled quite a bit. According to reports from The New York Times, Disney’s streaming operations overall lost $512 million in the most recent quarter, bringing streaming losses to more than $11 billion. The streaming platform also lost about 11.7 million subscribers worldwide. Currently, Disney+ is in third place overall with subscribers (146.1 million), solidly behind Netflix (more than 231 million subscribers) and Amazon Prime (more than 200 million subscribers).

Bob Iger standing in front of the Disney+ log in screen.
Credit: Inside the Magic

If you are a Disney+ subscriber, you should make sure to mark your calendars for October 12, as that’s the date when Disney+ is set to adjust its pricing structure for one of its subscription plans. Starting from October 12, the ad-free version of Disney+ will see a price increase to $13.99 per month, representing a substantial 27% hike from its current rate. However, for those who currently enjoy Disney+ with ads, there’s good news, as the price will remain unchanged at $7.99 per month.

For subscribers who currently have the ad-free plan, it’s prudent to consider whether the new pricing aligns with their preferences and budget.

Will this new Disney+ price hike be affecting you? Let Inside the Magic know in the comments!

in Disney, Entertainment

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