Unfortunately, in the world of entertainment for consumers, price increases are the rule, not the exception. The last example of this is Walt Disney (NYSE: DIS), which for the first time increased the price of its hot Disney + streaming service.
The hike takes effect this Friday. Customers who pay from month to month will see their rates rise by $ 1, from $ 6.99 to $ 7.99 per month. Those who pay annually will get a little break, and the one-year subscription will climb to $ 10 to $ 79.99.
Subscribers to the expanded package, which merges other Hulu-owned Dislu collections and ESPN + with Disney +, will also be affected by a $ 1-month increase starting Friday, at $ 13.99.
Disney + is an obvious goal of adjusting prices upwards. The service has quickly amassed a huge customer base (over 100 million subscribers, since the beginning of this month), who are unlikely to think that an increase of a maximum of $ 1 per month will be a termination of a contract that prevents them from enjoying WandaVision or Toy Story on request.
That sudden, sudden increase in revenue will also help offset the company’s struggles during the pandemic. Although Disney + was a hit during the outbreak, Disney’s studio entertainment department (i.e. Movies) accepted it due to cinema closures, as well as parks, experiences and products, mainly due to the exclusion of theme parks.
Investors are certainly not afraid of the increase in Disney + prices; Disney shares outperform 0.5% on Thursday S&P 500 by closing 1.2% more.
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