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Disney+ and Hulu raise prices by up to 13 percent after doubling profits
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Disney+ and Hulu increase standalone ad-free plans from $19 to $21.50 monthly, ad-supported plans from $12 to $12.50, and related bundles, following a 116 percent rise in combined operating income.
The price hikes reflect Disney's strategy to boost streaming profitability after strong revenue growth, potentially steering users toward higher-priced bundles and increasing costs for consumers already paying for multiple services.
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Standalone ad-free plans rise 13 percent to $21.50 monthly.
Ad-supported plans increase to $12.50 monthly.
Bundles with ads see price increases up to $33 monthly.
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What the cluster adds up to.
Disney's price increases follow a 116 percent surge in combined operating income for Disney+ and Hulu, indicating profitability is a key driver for the hikes.
The cost increase forces subscribers to pay more for services that were previously priced lower than Netflix's most popular plans, potentially accelerating churn among price-sensitive users.
The pricing shift may push users toward bundled offerings, which Disney believes reduce cancellations, but this could limit consumer choice in a competitive streaming market.
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