TLDR
- Disney+ hikes prices amid streaming profit push and recent Kimmel backlash.
- Price surge hits Disney+ bundles; ad-free now $18.99 monthly from October.
- Disney raises streaming rates as it nears profitability and faces protests
- Kimmel controversy fuels tension as Disney+ announces steep price increases.
- DIS stock dips after price hikes and viewer fallout from late-night scandal.
The Walt Disney Company(DIS) stock closed at $112.25 on Tuesday, slipping 0.28% during regular trading hours. After the market closed, shares dipped slightly further to $112.20 in after-hours trading. The modest decline followed the company’s announcement of price hikes across its streaming platforms.
Disney confirmed that starting October 21, prices for Disney+ and bundled packages will increase significantly. The ad-supported Disney+ plan will rise by $2 to $11.99 per month, while the ad-free tier will jump by $3 to $18.99. Annual subscriptions for the premium plan will also increase by $30, bringing the new price to $189.99 per year.
The Disney+ and Hulu ad-supported bundle will increase by $2 monthly, reaching $14.99. More comprehensive packages that include ESPN+ or HBO Max will see $3 monthly hikes. However, NFL+ plans remain unchanged, offering a rare hold in pricing amidst the broader increase.
Streaming division enters new phase of profitability
Disney aims to boost margins as its streaming business begins showing signs of profitability after several years of investment. Since its November 2019 launch at $6.99, Disney+ has gradually increased prices to combat content costs and operational losses. This marks the fourth consecutive year of pricing adjustments across its streaming portfolio.
In recent quarters, Disney emphasized pricing discipline as a lever for financial health during earnings calls. The company projected a modest uptick in Disney+ subscriptions in the fourth fiscal quarter. These projections likely factored in both content additions and the upcoming return of late-night programming.
Jimmy Kimmel Live! is set to resume airing this week following public backlash over its brief suspension. ABC temporarily removed the show last week after host Jimmy Kimmel’s controversial remarks about a public figure. The move triggered subscriber cancellations and sharp criticism from viewers and fellow hosts.
Controversy and price hikes fuel consumer response
The timing of the price hikes coincides with reputational concerns stemming from Disney’s handling of the Kimmel situation. Some subscribers expressed discontent on social media and encouraged others to cancel services in protest. Disney reinstated the show within a week, aiming to ease tensions and stabilize viewership.
Although the controversy subsided, the episode exposed Disney’s vulnerability to rapid public reaction. As more households weigh subscription costs, loyalty to the brand may face new challenges. The company has not issued additional statements addressing either the backlash or the pricing strategy.
DIS continues to navigate a volatile mix of digital growth, pricing pressure, and public relations. While streaming revenue climbs, consumer sentiment and pricing tolerance may shape future outcomes. Investors will watch closely as October’s changes begin to impact subscriber behavior and revenue metrics.
