Walt Disney has raised prices across multiple streaming subscription tiers in the U.S., marking the sixth price increase in six years as the company works to strengthen profitability in its streaming business, which has become central to its future strategy. The company confirmed Wednesday that its flagship Disney+ ad-free plan will rise by $2.50, or 13%, to $21.49 per month, matching earlier reports.
The price adjustment brings the premium Disney+ tier closer in cost to comparable packages offered by Netflix, whose ad-free plan supporting 4K resolution and multiple devices is priced at $26.99 per month. Hulu's ad-free tier will also see a $2.50 increase, while the bundled Disney+ and Hulu ad-free subscription will go up by $2 to $21.99 per month, which is only 50 cents more than subscribing to each service individually.
For the ad-supported versions, Disney+ and Hulu will each cost $12.49 per month, up 50 cents from current pricing. The ad-supported bundle combining both Disney+ and Hulu will remain unchanged at $12.99 per month. Like other industry players, Disney continues to price its bundles attractively because consumers are less likely to cancel when they have access to multiple services under one plan.
Streaming providers including Netflix, Apple, Comcast, and Paramount Sky Dance are all raising subscription prices to improve profitability. Disney+ has seen steady price increases since its original ad-free plan launched at $6.99 per month in 2019.
In August, Disney reported that its entertainment segment, which includes film studios, non-sports television networks, and Disney+, posted a 64% year-over-year increase in third-quarter operating income, driven by subscriber growth and double-digit profit margins in the online video business. Walt Disney earlier this month appointed Adam Smith as the sole chairman of its direct-to-consumer division, which encompasses the company's entertainment streaming services. Management has initiated operational restructuring and has shown progress in boosting user engagement on Disney+.
Disney has also named Karan Deep Anand as its new chief technology officer, reporting directly to CEO Josh D'Amaro. D'Amaro has prioritized modernizing the company's consumer engagement efforts. During an investor call last month, D'Amaro stated that starting in spring 2027, Disney+ will evolve into a platform that offers merchandise, gaming, and experiences in addition to films and TV programming. The latest installment of the popular Pixar franchise, Toy Story 5, debuted on the platform Wednesday.