Since its 2019 debut, Disney+ has established itself as a key hub for both new and classic Disney content. The streaming service boasted more than 221 million subscribers as of July 2022. And it demonstrates the enormous success of Disney’s use of the platform to grow its media brands.
Disney recently announced that the streaming platform’s prices would rise in December. While an ad-supported version of Disney+ will be available for $7.99 per month, an ad-free version will cost $10.99 per month. And the more expensive ad-free version will be known as Disney+ Premium.
Disney+ should cost even more, despite price rise
Despite the recent price increases, Disney CEO Bob Chapek believes the content offered by Disney+ is still worth more than the subscription cost. According to Variety, Chapek believes Disney+ content is of sufficient quality to justify the upcoming price increases. He also claims that the price increase will not have a negative impact on the overall success of Disney+. He said:
I think we’re way underpriced relative to the value we provide. [W]e believe our churn implications of taking up the price… will be negligible
Chapek goes on to say that having an ad-supported version of Disney+ “will let us cater to diverse consumer needs.” Because whichever version of Disney+ people subscribe to will still provide them with the same content.
His promotion of the price increase as putting customers first is consistent with his mission to make Disney+ an interactive platform focused on personalized experiences. The value Chapek sees in Disney+ reflects the future focus Disney hopes to place on streaming.
This includes a proposed “hard bundle” that would combine Disney+, ESPN+, and Hulu into a single service. Chapek’s justification for higher Disney+ prices boasts his belief in the streaming service’s growth over the next few years.
The money spent on upcoming Disney+ original series, such as Star Wars: Skeleton Crew’s reported $136 million budget, appears to reflect this sentiment. It may also result in additional price increases in the future.
While a bundled platform between Disney+ and other streaming services is unlikely in the near future, Chapek bringing up the idea demonstrates his lofty goals for this avenue. While Disney+ may be raising its prices, it’s clear that Chapek sees the decision as justified and is eager to continue growing the service.