As part of an effort to make its streaming business profitable, Disney announced that the price of ad-free Disney+ will rise 38% to $10.99 — “a $3 per month increase,” reports CNBC. “The price of Hulu without ads will rise by $2 per month, from $12.99 to $14.99, effective as of Oct. 10. Hulu with ads will go up by $1 per month, rising from $6.99 to $7.99.” From the report: The price increases reflect the growing operating loss for Disney’s streaming services. Disney+, Hulu and ESPN+ combined to lose $1.1 billion in the fiscal third quarter, $300 million more than the average analyst estimate, reflecting the higher cost of content on the services. The increased operating loss occurred even while Disney added about 15 million new Disney+ subscribers in the quarter, about 5 million more than analysts estimated. Disney has previously stated it plans to lose money on Disney+ until 2024.
Average revenue per user for Disney+ decreased by 5% in the quarter in the U.S. and Canada due to more customers taking cheaper multi-product offerings. Overall, the company’s quarterly results, also announced Wednesday, beat analysts’ expectations on the top and bottom lines. Disney+ subscriptions rose to 152.1 million during the most recent period, higher than Wall Street’s projections of 147 million. In a separate article, CNBC reports that Disney now projects between 215 million and 245 million total Disney+ customers by 2024, “down 15 million on both the low end and high end of the company’s previous guidance.” Previously, the guidance was between 230 million and 260 million by the end of fiscal 2024. They also reaffirmed its expectation that the streaming service will become profitable by the end of 2024.