Disney Lifts Ad-Free Streaming Prices as CFO Prioritizes Profit Dollars
Disney increased standalone ad-free Disney+ and Hulu subscriptions by 13% to $21.49 per month on September 23, while ad-supported plans rose only 50 cents. CFO Hugh Johnston said the streaming unit is focused on growing absolute operating income rather than maximizing margin percentage. The company also reported higher subscription revenue and softer ad pricing in its latest quarter.
Disney’s latest U.S. streaming increase is its sixth in six years. The standalone ad-free Disney+ and Hulu option now costs $21.49 monthly, $9 above the ad-supported version, compared with a $7 gap previously. Ad-free bundles also rose, while the ad-supported Disney+ and Hulu bundle stayed at $12.99.
In the June quarter, Disney+ and Hulu subscription fees reached $4.715 billion, up 15%, helped by subscriber growth and higher rates. Advertising revenue rose 3% to $851 million, though ad rates declined 4%. Management cited cost cuts, international originals, and a FAST channel as levers for future growth.
Higher ad-free prices may push some households toward cheaper ad-supported tiers or bundles, changing viewing habits and exposure to advertising. Subscribers could face more trade-offs between cost and uninterrupted viewing. Advertisers may gain broader reach if price-sensitive users switch, though softer ad pricing could limit revenue gains. Disney’s focus on profit dollars may influence rivals’ pricing and content investment, potentially affecting workers and consumers across streaming.