Disney plans to raise the monthly price of Disney+ to $7.99 a month from $6.99 next March as it ramps up its content offerings substantially.
In continental Europe, the service will also go up €2 a month to €8.
Disney+ now has 86.8 million global subscribers and the company projects it will reach between 230 million and 260 million around the world by the end of fiscal 2024.
The price hike was revealed during the company’s investor day, when it outlined a big push across all of its division, with an array of new titles from Marvel, Pixar, Lucasfilm and Disney’s own brand. The March increase will coincide with the arrival of Marvel series Loki as well as animated feature Raya And the Last Dragon. The latter will be a Premier Access title, the same release pattern used for Mulan last summer.
“We’ve clearly positioned ourselves in the leader of the direct-to-consumer space,” executive chairman Bob Iger said. “And we’re just getting started.”
The programming pipeline has become more “robust” and “ambitious” than was expected at the start of the streaming push, Iger added. In the next couple of years, it will deliver two new film or series titles each week.
At the company’s last direct-to-consumer investor day, in April 2019, the reveal of the price of Disney+ drew gasps in the room of analysts and media. It put Disney at the low end of the competitive set. WarnerMedia’s HBO Max is $15 a month and Netflix is $14 for its most popular subscription tier.
Average revenue per user, a key metric used in streaming, has been a little slimmer for Disney+ than for its rivals despite the rapid adoption of the service. Given the big influx in content spending, the company is betting that consumers will accept the higher price point, especially with a larger selection of feature films heading to streaming due to Covid-19.