Disney Plus is following Netflix and introducing a $1 price hike for subscribers in the United States, raising it to $7.99 a month.
The move comes after a lengthy presentation showing what Disney is bringing to Disney Plus. The price hike will begin on March 26, 2021, coming in at $7.99 per month or $79.99 per year. Also, the Disney Bundle — that has Disney+, Hulu, and ESPN Plus — will see a $1 increase to $13.99 a month.
As the company invests in content, the company has to raise prices to recoup that loss. This is the first time that Disney Plus has received a price hike. It arrives just a couple of months after Netflix announced it was increasing prices for subscribers in the United States, including raising its most popular plan from $13 to $14 a month.
Although it seems early for a Disney Plus hike, the announcement comes amidst a flurry of other announcements over TV shows and movies heading to Disney Plus. The more that Disney spends on content for its service, the more revenue Disney needs to invest. When Netflix’s Greg Peters, chief operating officer and chief product officer, was asked about price hikes, he said Netflix will “occasionally go back and ask [customers] to pay a little bit more to keep that virtuous cycle of investment and value creation going.” Disney is now doing the same thing.
It’s unclear if price hikes are coming to Disney Plus subscribers in other countries or if this will affect the bundle.