July 15, 2022
Disney is raising the monthly subscription fee for its ESPN+ streaming service $3 on Aug. 23 — a 43% increase from the current $6.99 fee. The new annual subscription price will jump to $99.99 from $69.99 currently.
The $13.99 monthly cost of the Disney+, Hulu and ESPN+ bundle will not change.
The move comes as Disney attempts to expedite profitability for its direct-to-consumer business segment, which also includes Disney+, Hulu and Hulu + Live TV. Disney raised Hulu’s monthly fee $1 to $6.99 a year ago.
The direct-to-consumer segment reported an operating loss of $880 million on revenue of $4.9 billion in the most-recent fiscal period. The loss dwarfed the previous-year operating loss of $290 million.
ESPN+ ended Q1 with 22.3 million subscribers, up from 13.8 million in the previous-year period.
“As we increase our content investment, we believe that that’s going to give us the ability to adjust our price,” CEO Bob Chapek said on that fiscal call.