Summary

• Disney's decision to increase subscription prices in 2023 resulted in the loss of over 1 million subscribers, confirming predictions that higher costs would lead to cancellations.
• The acquisition of Hulu by Disney could lead to a combined streaming app in the future, potentially offering a more affordable and unified hip for subscribers.
• Increased subscription costs across other streaming platforms are likely to follow Disney's lead, but the value provided in of new titles and intellectual properties will determine whether customers are willing to pay higher prices.

New information on Disney also lost the top spot at the global box office last year to Universal after holding the rank for 7 years.

While February 2024 still offers subscribers many of the best movies on the Disney+ platform, it will be doing so without some 1.3 million subscribers that it lost between Q3 and Q4 in 2023 (via Variety). While percentage-wise, the 1.3 million lost subscribers comes out to roughly a 1.2% decrease in their total subscriber base, Disney's business model is obviously to attract new customers each quarter. A decrease of 1.3 million subscribers points to the truth about customers' unwillingness to pay higher subscription costs.

Disney+ Losing Over 1 Million Subscribers After Increasing Prices Confirms What We Already Predicted Would Happen

The general consensus of Disney Plus raising the costs of its subscription plans was that it would result in many people canceling their services, which is exactly what happened. Despite the backlash, the prices of the ad-free Disney Plus service increased in October 2023 to $13.99 per month or $140 annually from $10.99 per month or $100 annually. Hulu-owned Disney also raised the prices of their ad-free platform as well, from $14.99 per month to $17.99 per month.

With Disney acquiring full control of Hulu from Comcast in 2024, Hulu could likely fold completely under the Disney+ umbrella. This could potentially prompt some type of combined hip under a singular streaming app yet to be announced. Currently, dual Hulu and Disney+ subscribers pay a total of $31.98 per month with separate hips. There is currently a bundle that offers Hulu & Disney+ hips for $19.99 per month, a savings of 37%, but only for eligible subscribers.

Disney+'s Report Proves Streaming Services Can't Afford To Keep Raising Prices Without A Big Payoff For Subscribers

Disney+ lost a substantial number of subscribers by raising its prices at the end of 2023, which it could regain through increased universality with Hulu. Hulu has steadily increased its subscriber base since it launched in 2007, having a total of 48.5 million subscribers at the end of 2023. Increased subscription costs of other streaming platforms such as Max and Netflix seem inevitable in the wake of Disney's recent spikes. The question will come down to consumer value in the form of new titles and intellectual properties in response to the increased costs, an area in which Disney was mostly unconvincing as proven by its recent subscriber losses.

Source: Variety