Disney CEO Bob Chapek claims the company offers a much better price-to-value ratio than other streaming platforms, even with its planned increase.
Subscription plans for Disney+ and Hulu are expected to rise in the fourth quarter of 2022, yet according to Variety, Chapek asserts the streaming conglomerate is still "underpriced relative to the value" of the services. Chapek reportedly spoke about the future subscription prices on Wednesday at Goldman Sachs’ Communacopia + Technology Conference 2022 and noted that the core Disney+ service without ads will continue to be priced below several competitors.
The price of the current ad-free version of Disney+ is $7.99/month. This is expected to rise in December to $10.99/month, a 38% increase, and will be known as Disney+ Premium. An additional launch on Dec. 8 will see the introduction of Disney+ Basic, a plan which will include ads, at the price of $7.99/month. Despite rising inflation, Chapek claims this new basic plan "will really let us cater to diverse consumer needs" whilst allowing the streaming portfolio to improve its operating profitability. Although Disney boasts more than 221 million subscriptions across Disney+, ESPN+ and Hulu, the multinational streaming platform generates far lower revenue per streaming subscription than its competitors, such as Netflix.
Will Disney Take Over Hulu?
The CEO discussed subscription plan changes amidst prospective proposals with Hulu as a means of bolstering the content on Disney+. When asked previously about where Hulu content fits with Disney, Chapek explained that Disney+ subscribers have requested more general entertainment. He explained that Disney wants to cater to different viewing patterns undertaken by audiences and said, "When people watched Dumbo with their kids and they put them to bed, and it's now 7:30 -- those same very same people might not want to watch Bambi? They want to watch something else, something that’s still capital "D" Disney.” The Walt Disney Company, which majority owns 67% of Hulu, is still in discussions regarding a deal to potentially buy out Comcast's 33% remaining shares.
At the D23 fan conference this year, Disney revealed the extent of its plans to bolster its general entertainment content. With a particular focus on its move into the world of licensed gaming, Disney was quick to promote its Twisted Wonderland game as well as its new video game venture Dreamlight Valley.
Among the many announcements at the D23 conference, Disney Animation officially unveiled the first look at Wish starring West Side Story's Ariana DeBose, as well as footage of Disney's live-action film The Little Mermaid, starring Halle Bailey. Disney subsidiary, Pixar, also announced its first original television show, Win or Lose, and confirmed that a sequel to Inside Out is in development.
Source: Variety