The end of an era.
The streaming model created by Netflix, with its huge menu of movies, shows and endless entertainment without annoying ads at extremely low prices, officially stopped last Wednesday.
Disney boss Bob Iger announced during the company's quarterly earnings report that the company will raise Disney+ prices again for the second time in less than a year, raising the ad-free program's monthly cost to $13,99 October. Hulu, in which Disney owns a majority stake, will also raise the monthly cost of its ad-free subscription to $17,99.
The more than 20% price hike means Disney+ will now cost double what it did when the service debuted four years ago, and Hulu's ad-free package will now be more expensive than popular Netflix.
When Iger launched Disney+ in 2019, the CEO said he had intentionally announced very low prices "to reach as many people as possible."
However, Wednesday's move, with a significant price increase, signaled the company's intention to extract more revenue from streaming. driving consumers to the ad-supported programs, which have been proven much more profitable.
"Advertising market for streaming is on the rise", Reported Iger to investors during the quarterly earnings presentation. “It's healthier than the linear TV advertising market. We believe in the future of advertising on our streaming platforms, both Disney+ and Hulu."
Disney's moves are part of a broader trend occurring across the streaming industry landscape.
Paramount, Warner Bros, Discovery, NBCU and even Netflix have raised prices this year in an effort to collect more profits. And as Iger announced Wednesday for Disney, password-sharing bans are coming.
The announcement ends much of the initial allure that led to streaming's popularity. When Netflix first offered its service for $8 a month, millions of people signed up. It was the genesis of the streaming era, with entertainment companies like Disney launching their own direct-to-consumer products at very low cost.
That was then, now more is coming.
