Disney to raise prices of streaming services

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Disney is hiking the price of all of its streaming services.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04Wall Street is in recovery mode, helped by the latest

00:07round of corporate earnings.

00:09E-commerce platform Shopify posted a better than expected

00:1221% jump in second quarter revenue.

00:15Lyft topped sales forecasts.

00:17And for the first time in the company's history,

00:19it posted a net profit.

00:22And speaking of auspicious milestones,

00:24Walt Disney's streaming service is

00:26profitable for the first time since launching

00:29Disney Plus back in 2019.

00:32The Disney streaming bundle, which

00:33includes Disney Plus, Hulu, and ESPN Plus,

00:37saw a quarterly operating profit of $47 million.

00:41In a statement from CEO Bob Iger's executive team,

00:44quote, the combination of exceptional content

00:47and a broad brand portfolio is the key to our success

00:51as we build streaming into a profitable growth

00:53business for the company over the long term.

00:55We were pleased to see our combined streaming

00:57business profitable in the third quarter,

01:00ahead of our guidance, and we remain

01:02on track for that profitability to improve in Q4.

01:06Disney says its streaming business

01:07is benefiting from a positive overflow from its film

01:10business.

01:11It says it saw a spike in new subscribers

01:14eager to catch up before sequels or new installments

01:16in a franchise hit the big screen.

01:18However, the monthly price tag for access to all that content

01:22is going up.

01:23Disney Plus with ads will go to $9.99 from $7.99 in October.

01:28Without ads, the price goes up to $15.99 from $13.99.

01:33Hulu goes to $9.99 with ads, and $18.99 without.

01:38ESPN Plus will go up a buck to $11.99.

01:41And in an attempt to better compete with Netflix,

01:44a new Disney bundle that includes

01:46Max from Warner Brothers Discovery

01:48will cost $30 a month.

01:51That'll do it for your daily briefing from the New York

01:53Stock Exchange.

01:54I'm Conway Gittins with The Street.

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