Disney+ Hikes Prices as Company Reports Lower Earnings

The Walt Disney Company is raising prices for its Disney+ streaming service, following its third-quarter report showing financial struggles in almost all areas except international parks.

Starting October 12, the ad-free subscription for Disney+ will cost nearly 30% more each month. This marks the second time Disney has upped the price in less than a year. Disney, which also owns a majority share in streaming service Hulu, is raising prices there, too. Hulu's ad-free version will go up about 20% in October.

On Disney's Q3 earnings call, CEO Bob Iger said these price changes aim to push more Disney+ users toward the service's ad-supported option. The increase comes after Disney revealed its streaming business is still losing money, although the loss was smaller in the third quarter.

Subscribers in the US and Canada are also dropping. Disney noted a 1% decrease in domestic subscribers for the second quarter in a row. International subscribers, however, grew 2% in the quarter. Iger also hinted that Disney+ is looking at ways to stop password sharing, a move that recently helped Netflix gain millions of new subscribers.

Overall, Disney's revenue for the third quarter was slightly lower than expected, with revenue shrinking in nearly every area but theme parks. The company's quarterly revenue was $22.3 billion, below the expected $22.5 billion. Revenue in traditional TV kept slipping, down 7% when compared to the same quarter last year. Returning CEO Bob Iger was brought in to make the company an attractive stock again and faces tough strategic decisions in the near future.