Disney+ Price Hike Will Be Followed By Password Sharing Crackdown

Disney has announced the expansion of its ad-free streaming subscriptions to more markets alongside the disappointing news of a price hike across its streaming services. The Basic Disney+ tier with ads isn't getting a price hike and will continue to be available at $7.99 per month, and so will Hulu. But it's the ad-free streaming experience that's going to be more expensive for subscribers starting October 12, 2023. The cheapest ad-free Disney+ plan will soon start at $13.99 per month, which is significantly higher than the current ask of $10.99 per month.

The Duo Basic plan with ads, which bundles Disney+ and Hulu+, will also stick to its $9.99 per month premium. However, Disney is introducing a new ad-free version of this tier that will cost double at $19.99 per month. The Trio Basic plan with ads, which throws ESPN+ into the mix, is increasing from $12.99 per month to $14.99 per month. The top-tier Trio Premium bundle without ads will also get a price hike, landing at $24.99 per month, up from the existing damage of $19.99 per month.

A similar price surge is also coming to standalone as well as bundled Hulu plans. The ad-free Hulu+ subscription currently priced at $14.99 per month will jump to the $17.99 per month mark in the coming weeks. The Hulu+ subscription with Live TV and ads included will go for $76.99 per month, up from the current rate of $69.99. The commercial-free version is going from $82.99 per month to $89.99 per month for U.S. customers.

The price hike across Disney-owned streaming properties is not surprising, as it follows in the footsteps of rival Netflix. Taking a step forward, Disney will be rolling out the ad-supported subscription packages in Europe and Canada starting November 1, 2023. But Disney's trail of aping Netflix doesn't end there. Just like Netflix, Disney is also planning to curb password sharing. During the company's Q3 2023 earnings call, CEO Bob Iger announced that password crackdown tactics are in the pipeline and they will go into effect next year.

Iger stressed that the crackdown on password sharing is a "real priority" for the company. It seems that the unwelcome rule will be implemented swiftly, but Iger didn't provide specific detail on how exactly it will be enforced. "We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family," Iger said. He further added that subscriber agreements and policy terms will be accordingly updated later this year.

But if Netflix is any indication, it just might work in Disney's favor. Netflix reported positive revenue growth after it started its own password crackdown. Moreover, Iger also commented that the ad-tier subscriptions have a positive effect on the balance sheet, which also explains why they aren't getting a price hike.