Disney is looking to join Netflix in raising prices for its streaming services and cracking down on password sharing.
During an earnings call Wednesday, Walt Disney CEO Bob Iger said the company is looking to increase profits by hiking prices by $3 for its ad-free Disney+ and Hulu, increasing monthly subscription costs to almost $14 and $18, respectively. He acknowledged that the price hikes are intended to steer customers toward the cheaper, ad-supported versions of its streaming services — whose prices are not expected to change — with Iger adding that it's a healthier business than traditional television ads.
The Disney CEO also said the company will adjust subscriber agreements later this year to cut down on account sharing. While Iger didn't provide details on the crackdown, he noted that Disney would benefit from the move in 2024.
Netflix will charge an extra $8 monthly to subscribers who share
The streaming giant is working to control what it sees as high levels of account password sharing. The company also wants more subscribers.
The announcements came after Disney released its earnings for the fiscal third quarter that ended on July 1. The company reported substantial losses in both domestic and international markets, but acknowledged that problems in the Indian market played a large role.
Overall, the company reported a 4% increase in quarterly revenue, but saw a $460 million net loss from a year-earlier profit of $1.4 billion. Disney said its streaming services also lost about 300,000 subscribers from April through June, the same number it shed in the second fiscal quarter of this year.
