Disney+ and Hulu subscriptions are getting more expensive
According to The Street , Wall Street is experiencing a recovery, bolstered by a fresh round of corporate earnings reports. E-commerce giant Shopify exceeded expectations, posting a 21% rise in second-quarter revenue. Lyft also surpassed sales forecasts and achieved a historic milestone by posting a net profit for the first time in its history.
In another significant development, Walt Disney’s streaming service has become profitable for the first time since the launch of Disney+ in 2019. The Disney streaming bundle, which includes Disney+, Hulu, and ESPN+, reported a quarterly operating profit of $47 million.
CEO Bob Iger’s team highlighted the company’s success, noting, “The combination of exceptional content and a broad brand portfolio is the key to our success as we build streaming into a profitable growth business for the company. We are pleased to see our combined streaming business profitable in the third quarter, ahead of our guidance, and expect that profitability to improve further in Q4.”
Disney attributes the strong performance to its film business, which has helped attract new subscribers ahead of upcoming sequels and franchise installments.
However, in response to the success, Disney is raising prices across its streaming services. Starting in October, Disney+ with ads will increase to $9.99 from $7.99, while the ad-free version will jump to $15.99 from $13.99. Hulu’s pricing will also rise, with the ad-supported version going to $9.99 and the ad-free version reaching $18.99. ESPN+ will see a price hike of $1, reaching $11.99.
To compete more effectively with Netflix, Disney is introducing a new bundle with Max from Warner Bros. Discovery, priced at $30 per month.
That wraps up today’s Daily Briefing. Reporting from the New York Stock Exchange, I’m Conway Gittens with TheStreet.
