Please ensure Javascript is enabled for purposes of website accessibility

First Disney+ Price Hike Takes Effect Friday

By Eric Volkman - Updated Mar 25, 2021 at 5:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Subscribers of the popular video streaming service will have to fork over a maximum of $1 more per month.

In the world of consumer entertainment, unfortunately, price hikes tend to be the rule and not the exception. The latest example of this is Walt Disney (DIS -2.00%), which for the first time has increased the price of its hot Disney+ streaming service.

The hike takes effect this Friday. Customers who pay on a month-to-month basis will see their rates rise by $1, from $6.99 to $7.99 per month. Those who pay annually will get a bit of a break, with the one-year subscription climbing $10 to $79.99.

A young family gathered together on a couch, watching TV and eating a snack from a bowl.

Image source: Getty Images.

Subscribers of the expanded package, which bundles fellow Disney-owned streamers Hulu and ESPN+ with Disney+, will also be hit with a $1 per month hike starting Friday, to $13.99.

Disney+ is an obvious target for an upward price adjustment. The service has very quickly amassed a huge user base (over 100 million subscribers, as of earlier this month), who likely won't consider a maximum $1 per month increase to be a deal breaker keeping them from the delights of WandaVision or Toy Story on demand.

That sharp, sudden boost in revenue will also help make up for the company's struggles during the pandemic. While Disney+ has been a hit during the outbreak, Disney's studio entertainment division (i.e., movies) took it on the chin due to cinema closures, as did the parks, experiences, and products unit due largely to theme park shutdowns.

Investors certainly aren't spooked by the Disney+ price increases; on Thursday, Disney stock outpaced the 0.5% gain of the S&P 500 by closing 1.2% higher.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
$105.18 (-2.00%) $-2.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.