DISNEY has once again hinted that price hikes are on the horizon for its wildly popular streaming platform, Disney+.
CEO Bob Chapek said Wednesday that the U.S. company was “bullish” when it came to potential changes to its subscription tiers.
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It comes as a cost of living crisis is pummelling millions, with energy, food and tax bills rising to record-breaking highs in some cases.
Speaking during Disney’s first-quarter earnings call, Chapek teased a price increase as the company ploughs more money into content.
The streaming service is currently priced at $8/£8 a month or $80/£80 for a year’s subscription.
“As we increase our content investment, we believe that that’s going to give us the ability to adjust our price,” the chief exec said.
“We are bullish about our future content going forward, not only in terms of quality but also in terms of quantity.
“And that’s really what’s driving our bullishness for what we might see as the pricing power that we would have going forward.”
The 61-year-old last teased the increase in February, saying that it likely wouldn’t raise prices before October.
After that, he added, Disney might “have the flexibility, if we were to so choose, to then look at price increases on our service.”
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Following its launch in March 2020, the service raised its prices for the first time last year to the current $7.99-a-month rate.
That’s compared to $15.50/£15.99 a month for Netflix’s most popular tier after the tech titan jacked up its prices twice in as many years.
Netflix’s cheapest plan costs $10/£10.99, while rival Amazon Prime is priced at £8.99/£7.99.
Disney has not said how much it might raise its prices. It’s possible that the increase could see fees rise by up to $2/£2 a month.
It comes after Disney+ announced in March that it will launch its cheapest plan yet later this year.
Subscribers to the new payment tier will have to watch adverts as part of their viewing experience.
Those could come in the form of pre-roll ads similar to those on YouTube or commercials that run midway through shows and movies.
Disney did not specify the new tier’s price or launch date.
In a press release, Disney said that it would first roll out the ad-supported tier in the U.S. in late 2022.
The company has plans to expand internationally next year.
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