Disney+ price hike adds to broader streaming-industry shift toward profitability

Disney is raising the price of its Disney+ streaming service for the first time in months, lifting the ad-free plan by $3 to $19 a month and increasing the ad-supported tier by $2 to $12 a month. The changes take effect Oct. 21, the company said. The move comes as Disney and other major studios lean on streaming to drive profits after years of heavy investment and subscriber giveaways, a trend that has reshaped pricing across the sector.

Disney said the price hike is part of a broader strategy to grow streaming operating income. The company now targets about $1.3 billion in streaming operating income for this fiscal year, up from a previous forecast of $1 billion. Disney+ added 1.8 million subscribers in the past three months, bringing its global total to about 128 million, though growth has slowed as the company consolidates Disney+ and Hulu into a single app and expands content, including ABC News programming. The Bear has been a standout title on Disney+, underscoring the platform’s push into high-profile originals.

Disney is also pushing deeper into sports, with ESPN launching a streaming service priced at about $30 per month. The company continues to offer discounted bundles that mix Disney+, Hulu, and ESPN+ as part of its ongoing effort to monetize multi-service subscriptions while courting advertisers.

The price increase comes amid a broader industry trend as streaming platforms seek profitability after years of heavy investment and subscriber giveaways. Industry pricing highlights include Peacock, which raised the ad-supported plan to $10.99 per month, up nearly 40 percent from $7.99, and its Premium Plus plan to $16.99 per month. Peacock is also piloting a lower-entry tier that keeps the base price at $7.99 but limits access to next-day NBC and Bravo shows. Apple TV+ increased prices by 33 percent in August, lifting its monthly fee from $9.99 to $12.99, despite not offering an ad-supported option.

Beyond these moves, Netflix raised prices for its ad-supported tier to $7.99 in January. Paramount+ matched price increases last June, while Prime Video remains $8.99 per month. Apple TV+ stands out as the highest entry-level streaming price in the United States among services without an ads option.

Analysts say the price hikes reflect the rising cost of producing blockbuster content. House of the Dragon reportedly costs around $20 million per episode, and The Lord of the Rings: The Rings of Power has been reported to exceed $50 million per episode, underscoring why platform operators are seeking higher price points to fund premium programming.

The moves come as Disney navigates other ongoing pressures, including fallout related to late-night host Jimmy Kimmel. Kimmel Live! has faced controversy over remarks that prompted executives to pull the show from the air, though the program was slated to return tonight. The broader pricing trend, however, shows streaming platforms prioritizing profitability and sustainable returns after a period of aggressive investing in content and subscriber growth.