Disney, Hulu announce 20% price hike in wake of Kimmel controversy

Disney and Hulu announced a new round of price increases for Disney+, Hulu, and bundled services, effective Oct. 21, in what observers described as an aggressive move coming amid public backlash over ABC's suspension of Jimmy Kimmel Live.

The ad-supported Disney+ plan will rise from $9.99 to $11.99 a month, while the ad-free Disney+ Premium tier will climb from $15.99 to $18.99. Hulu with ads will increase from $9.99 to $11.99, though the ad-free Hulu Premium plan will remain at $18.99. The price hikes also extend to bundles that include Disney+, ESPN Select, HBO Max, and Live TV, with or without ads, though the exact bundle price increases were not specified in the company’s release. The changes take effect Oct. 21. Disney last raised prices in August 2024, when the basic Disney+ plan with ads rose to $9.99 and the premium tier to $15.99.

The timing comes amid backlash over ABC’s decision to suspend Jimmy Kimmel Live following remarks about the late Charlie Kirk. Disney said it had spent the past days in “thoughtful conversations with Jimmy,” and announced that it would bring the show back on Tuesday after a period of suspension. “Last Wednesday, we made the decision to suspend production on the show to avoid further inflaming a tense situation at an emotional moment for our country,” the company said. “It is a decision we made because we felt some of the comments were ill-timed and thus insensitive. We have spent the last days having thoughtful conversations with Jimmy, and after those conversations, we reached the decision to return the show on Tuesday.”

Investors appeared to react to the broader development. Deadline reported Disney’s stock fell from about $116 to $112 per share, a roughly 3.5% decline, after news broke of the price adjustments and the Kimmel situation. The price moves come as the company also navigates how to balance streaming pricing with subscriber growth amid a crowded market for on-demand entertainment.

The late-night program’s status has remained fluid in recent days. Disney confirmed that Jimmy Kimmel Live would return to ABC beginning Tuesday, Sept. 23, with Glen Powell and Sarah McLachlan set to appear. Some ABC affiliates, controlled by Sinclair, planned to continue preempting the show in protest, while Hulu will offer a streaming option for viewers. The dispute underscores the broader tensions between media companies’ viewer-facing content decisions and investor expectations amid ongoing competitive pressure in the streaming era.

President Donald Trump publicly celebrated ABC’s cancellation decision, writing on Truth Social that “The ratings challenged Jimmy Kimmel Show is CANCELLED,” implying the move would boost network performance. While the social media post attracted attention, Disney executives stressed that the decision to suspend and later restore the program was made in the context of an ongoing conversation about timing and sensitivity.

Jimmy Kimmel Live! airs weeknights at 11:35 p.m. ET/PT on ABC. The episode schedule and streaming availability will continue to adapt as Disney and its networks navigate the balance between live broadcast exposure, streaming demand, and the price a growing cohort of subscribers is willing to pay for a suite of bundled entertainment options.

As Disney, Hulu and other streaming services adjust prices, the company’s stated aim remains to align pricing with the value offered by a diversified slate of live and on-demand content, sports, and exclusive programming. Analysts will likely watch for any subscriber churn or acceleration in bundle uptake that could indicate how much price sensitivity exists among households choosing Disney’s ecosystem in a competitive, post-pandemic media environment.