DISNEY has again hinted that price increases are on the horizon for its hugely popular streaming platform, Disney+.
CEO Bob Chapek said on Wednesday that the US company was “optimistic” about potential changes to its subscription tiers.
A livelihood crisis ensues, affecting millions, with energy, food and tax bills soaring to record highs in some cases.
During Disney’s first-quarter earnings conference call, Chapek announced a price increase as the company invests more money in content.
The streaming service currently costs $8/£8 a month or $80/£80 for an annual subscription.
“As we increase our investment in content, we believe that will give us the opportunity to adjust our price,” the chief executive said.
“We are optimistic about our future content, not only in terms of quality but also in terms of quantity.
“And that’s really why we’re optimistic about what we might view as the pricing power that we would have going forward.”
The 61-year-old last teased the hike in February, saying prices are unlikely to be increased until October.
After that, he added, Disney “may have the flexibility if we choose to then consider price increases for our service.”
After its launch in March 2020, the service increased its prices for the first time last year to its current price of $7.99 per month.
That compares to $15.50/£15.99 a month for Netflix’s most popular tier, after the tech titan increased its prices twice in as many years.
Netflix’s cheapest plan costs $10 / £10.99, while rival Amazon Prime is priced at £8.99 / £7.99.
Disney hasn’t said how much it might increase its prices. It’s possible that the increase could add up to $2/£2 per month to fees.
It comes after Disney+ announced in March that it would launch its cheapest plan later this year.
Subscribers to the new payment tier must view ads as part of their viewing experience.
These could come in the form of pre-roll ads similar to those on YouTube or commercials running in the middle of shows and movies.
Disney hasn’t revealed the price or launch date of the new tier.
In a press release, Disney said it will be launching the ad-supported tier for the first time in the US in late 2022.
The company plans to expand internationally over the next year.
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https://www.the-sun.com/tech/5322050/disney-warns-price-rise-how-much-paying/ Disney+ warns ALL users about price hikes – how much you could pay