Breaking: Bob Iger's Number One Priority Is About To See BIG Changes
Big changes are on the horizon and this will affect the cost and policy for a big chunk of your Disney experience.
Bob Iger's #1 Priority
Bob Iger has returned to the Walt Disney Company for 8 months and he notes that his number one priority is to improve streaming and Disney+.
During the First Quarter Earnings Call, the Disney+ subscription had taken a loss. It appears this downward slope continues for the streaming service. For the Second Quarter Earnings, Disney+ lost 4 million subscribers. This decline is largely seen in overseas streaming services from Disney Hotstar. Disney+ Hotstar lost 4.6 million subscribers.
Domestic subscribers decreased just a bit for the 3rd Quarter Earnings Call. Internationally there was a sight increase in subscribers.
Disney+ Price Increases
In a previous Earnings Call, Bog Iger shared that Disney+ will increase the price of the ad-free subscription tier. Currently, this price is $11 a month or $110 for a year. Bob Iger shares that 40% of new Diseny+ subscribers are choosing the ad-supported subscription.
Commercial-free Disney+ will cost $13.99 per month. This will be a 27% increase starting September 6, 2023. Disney+ with ads will remain at $7.99 per month.
This is in an effort to encourage more subscribers to switch to the streaming service with ads. This streaming tier may see a small increase in price or no increase at all according to Iger.
Commercial-free Disney+ will cost $13.99 per month.
More Price Increases
Disney's other streaming platforms will also see price increases as well. Hulu with no ads will go from $14.99 to #17.99 per month. ESPN+ will increase from $9.99 per month to $10.99.
This will not affect ad-supported susbscribers.
Account Sharing
It appears that Disney will crack down on Disney+ account sharing soon. Bob Iger says, "Later this year, we will begin to update our subscriber agreement with additional terms on our sharing policies. And we will roll out tactics to drive monetization sometime in 2024."
At this time, Disney has the ability to monitor password sharing. This is a significant first step to limit account sharing overall.
"Later this year, we will begin to update our subscriber agreement with additional terms on our sharing policies. And we will roll out tactics to drive monetization sometime in 2024."
Bob Iger
What do you think of the price increase for the ad-free tier of Disney+? Will you switch to the ad-supported option? Do you think Disney can really limit account sharing? Share your thoughts with us and share this news with a fellow Disney pal.
In my family, there’s no problem with Disney+ sharing. I cancelled it over a year ago.
Before the Chapek blatant greed era, Disney was the master of bundled prices. With the return of the dining plan, Disney can put together some great bundle deals to draw families back. Turn down or turn off the Woke at the same time, and they have a formula that can revive the Disney Parks revenue stream. Bundle on site hotel deals and the dining plan and park passes and Genie + and you have something people will buy. But make it a deal for the guests and show them this is a deal.
I think what Disney discovered in the Parks business is Disney better understands now the slope of their Demand curve for the parks. Said another way, the rapid park price increases over the past 18 months drove away customers. Disney has to factor in the cost of Genie + for a family of four when they look at the price charged for Parks admission and people's willingness to stay on-property. I do not think the Disney+ changes will impact my family, not yet, anyway. And if guessed that I am not the decision maker on Disney +, you would be correct.