The news: Disney’s streaming services are getting costlier.

• The subscription costs for ad-free Disney+ Premium and Hulu Premium are increasing 13% to $21.49 monthly, a $2.50 increase.
• The cost for bundled, ad-free subscriptions to both Disney+ and Hulu will increase by $2 to $21.99 monthly.
• The ad-supported bundle will remain at $12.99, while standalone ad tiers for Disney+ and Hulu will increase 50 cents to $12.49.
• This price hike is the fourth for Disney+ in as many years.

The trend: Numerous streaming platforms have raised subscription prices this year alone.

• Prime Video’s ad-free tier increased a significant 67% in March, now costing $4.99 monthly on top of the required $14.99 Prime membership.
• Netflix also increased its Standard plan price by 12.5% to $19.99 monthly.
• Apple TV raised subscription prices by $2 to $15 monthly in August, and the annual plan by $20 to $119.

The price increase seems to be designed to nudge consumers toward bundled and ad-supported offerings, which often yield lower churn rates, as audiences become more willing to cancel subscriptions without added value. Disney’s ad-supported subscription tier pricing notably did not change.

• 32% of streaming users have signed up for a service to watch something specific and then canceled or paused their subscription after watching three or more times in the last year, up from 22% in 2023, per CivicScience.
• Only 41% say they have never done this, compared with 50% in 2023, indicating that churn is on the rise.
• But there’s a caveat: Paid subscribers say they also move to ad-supported tiers or subscribed to bundled packages rather than canceling.

That indicates that streaming platforms are following a new playbook: Raise ad-free prices to get revenues from consumers willing to pay, while also making ad-supported and bundled tiers more appealing to reduce outright cancellations.

Recommendations for marketers:

• Plan campaigns around high-demand, high-viewership content across platforms, such as major season releases or live sporting events, to reduce reliance on subscriber bases that can fluctuate with price changes.
• As consumers shift to ad-supported tiers, prioritize unobtrusive placements like pause ads. These can help reach consumers without contributing to the ad fatigue that often accompanies ad-supported viewing.
• View bundled services as broader audience gateways. Platforms that aggregate multiple streaming services can give marketers access to viewers across a wider range of content and viewing habits, rather than tying reach to a single service’s subscriber base.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.