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

Walt Disney Co’s (NYSE: 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 (NASDAQ: 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.