Disney to hike prices for Disney+, Hulu as sales sink
STORY: Disney announced price hikes for its streaming services on Wednesday as CEO Bob Iger admitted the company faces what he called a "challenging environment".
The ad-free version of Disney+ will cost $13.99 - a 27-percent jump, starting October 12, while no-ad Hulu will go up 20 percent to $17.99.
In a bid to try and usher in new customers – Disney said it’s also rolling out ad-supported streaming to Europe and Canada. And Iger says next year, the company will address password sharing, echoing Netflix, which cracked down on it this summer.
It all came as the company reported quarterly revenue that fell short of what Wall Street expected at $22 billion, but delivered profits to investors that were better than expected, according to Refinitiv.
The company said it’s on track to keep up a cost-cutting drive aiming to slash $5.5 billion it promised investors earlier this year.
The company's direct-to-consumer business, including streaming, saw an uptick.
Disney’s theme parks and resorts also saw a bump, thanks to its park in Shanghai rebounding now that China’s health crisis restrictions have loosened up.
Meanwhile, after Iger sparked anger last month, telling striking Hollywood actors, who are demanding for higher pay and limits on the use of AI, that their demands were ‘not realistic’, on Wednesday he signalled a shift in his position.
In a revenue call, he said “Nothing is more important to this company than its relationships with the creative... I have deep respect and appreciation for all those who are vital to the extraordinary creative engine that drives this company and our industry.”
Reuters reported on Tuesday that Disney has created a task force to study AI and how it can be applied across the company.
Contract talks with writers have stalled and people on the picket lines told Reuters they were protesting a disregard for their demands.
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