Even though direct-to-consumer revenues in the last quarter went up by 19% to a total of $5.1 billion, Disney revealed during their earnings call that their operating loss for Disney Plus and ESPN Plus went up from $0.8 billion to $1.1 billion.
What does that mean in numbers for you?
You’ll pay more for Disney Plus, Hulu and ESPN Plus, unfortunately.
In a move that will make many dream of sailing the high seas, Disney will raise prices for all their streaming apps in 2022. The first price hike will be for ESPN Plus this month, followed by Hulu in October and Disney Plus in December.
The only way to get Disney Plus cheaper, or at least at the same price you’re paying right now, will be to choose the new ad-supported subscription tier.
Come December 2022, Disney Plus will go up from $7.99 to $10.99 for the same plan you have now. If you want to continue paying just $7.99, you’ll have to settle for the Disney Plus with ads subscription plan the company will launch.
If you have a Hulu subscription, you’ll feel the sting even earlier. The Hulu with ads plan will get a price hike from $6.99 to $7.99, while the ad-free Hulu will jump from $12.99 to $14.99.
Then, there’s ESPN Plus, which jumped recently from $6.99 to $9.99.
All in all, if you have monthly subscriptions to all of these services, by the end of the year you’ll pay between $4 and $8 more.
Here’s the full Disney offering and the related costs.
Disney blamed the increase in operating loss on rising production and programming costs.
Also, Disney CFO Christine McCarthy said during the call that they’ve “been in conversations with a number of different platforms” to implement sports betting on Disney Plus, a tactic that could also help them achieve profitability.