Disney executive Bob Chapek revealed that a Disney+ price increase could be coming sooner than expected. The CEO of The Walt Disney Company spoke about this topic and more during an investor call on Wednesday. Last year, the service raised the prices to $7.99. There was a quick fan and user outcry to the move, but it seems the diehards were unmoved. However, that was in a world before the current economic climate. (Greatly exacerbated by worldwide shipping/manufacturing troubles and price gouging by various entities as they try to recoup the money lost over the last few years.) Still, Disney is pressing ahead with a headwind provided by subscription numbers that have smashed the economic analyst forecasts for this year. People will pay no as long as the content they enjoy keeps flowing. Here’s what the CEO had to say.
“As you know, we launched with an extremely attractive opening price point on Disney plus, and we’ve been very comfortable with the price value relationship that we’ve offered,” Chapek began. “And as you know, as we increase our content investment, we believe that that’s going to give us the ability to adjust our price by wind still, at the same time maintain that strong value. Proposition. You mentioned that Disney plus ads tier. I think this is going to give us the ability to reach an even more broad audience as we expand Disney plus, across multiple price points.”
“And using some of our other services we can see the additive nature of an ad driven service that enables us to keep the price lower,” the executive added. “Of course that’s made up for by the additional revenue that we will get per user on the advertising spending. So we believe that we can, you know, sort of move up and cascade up our net price over time given the tremendous value that we started with, and the increased price value relationship, all of all the new content, but we’re pretty bullish. about that.”
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services-with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million-once again proved that we are in a league of our own,” Chapek mentioned earlier in the presentation. “As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”
Would you be upset with a price increase? Let us know down in the comments!