Walt disney Company is taking a bold approach by announcing its second price increase on Disney+ streaming service in less than a year.
In the fiscal third quarter earnings report, which ended July 1, the company faced substantial challenges to its revenue, with the exception of international parks, which continued to highlight.
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Starting October 12th, consumers who opt-in to the ad-free subscription to the Disney+ streaming service will be charged $13.99 per month.
This represents a notable increase of $3 per month over the previous fee.
This movement follows a precedent established in December, when the company had already raised the price of the same category, raising it from US$ 7.99 to US$ 10.99.
In the face of evolving financial circumstances and the backdrop of challenging revenues, Disney is taking decisive action to address the situation.
The rise in prices on the Disney+ streaming service reveals an adaptation strategy that seeks to balance its operations amid an ever-changing economic environment.
During Disney's fiscal 3rd quarter earnings conference call, the CEO mentioned that company has implemented price increases in nearly 50 countries to better reflect the value of its deals.
He also noted that the effects on churn and retention exceeded expectations, in the context of the company's streaming service.
(Image: Disney/Playback)
According to the statements made, Disney+ continues to not generate profit for the company, despite having recorded a reduction in its revenue losses during the 3rd quarter.
In the last quarter, the streaming recorded a significant increase in the number of subscribers internationally. However, the service also faced a reduction in the amount of subscribers in the US and Canada.
The company reported total revenue of approximately $22.3 billion, slightly short of expectations of around $22.5 billion, as per estimates.
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