Disney+ Subscribers Will Have To Shell Out An Extra Dollar Starting March

Walt Disney Co’s DIS subscription-video-on-demand service Disney+ has hiked its subscription price by $1 in the United States, the company said in its investors day presentation, as first reported by the Verge.

What Happened: The SVOD service will now cost $7.99 per month, with the increased price coming into effect on March 26, 2021.

The service will now cost $79.99 per year and the price hike of $1 also extends to the bundle which contains Disney+, Hulu, and ESPN Plus — which will now cost $13.99 per month.

It is unclear if the price hikes will also apply to other countries.

Why It Matters: This is the first-ever price hike for Disney’s streaming platform and takes place as the company invests more in content, the Verge noted.

In October, rival Netflix Inc NFLX hiked prices for its basic plan from $13 to $14 per month and for premium plans from $16 to $18 a month.

Disney+ has 86.8 million subscribers and plans to release something new every week, the company said in its investor presentation. 

Disney has 137 million streaming subscribers across Disney+, Hulu, and ESPN.

Price Action: Disney shares traded 3.95% higher at $160.80 in the after-hours session on Thursday after closing the regular session 0.17% higher.