Disney+ and Hulu Hike Prices to $12.49 With Ads Despite Streaming Profit More Than Doubling

Disney is raising prices for Disney+ and Hulu again, requiring subscribers to pay more for both advertising-supported and ad-free streaming even as the company's streaming business produces sharply higher profits. The standalone Disney+ and Hulu plans with advertising are each increasing by 50 cents to $12.49 per month, meaning customers will pay more while continuing to receive commercials. The Premium ad-free versions are getting an even larger $2.50 increase, bringing each to $21.49 per month. New customers face the higher standalone prices immediately, while existing subscribers will be notified before the changes reach their bills next month, depending on their billing cycles. Disney is also increasing the ad-free Disney+ and Hulu bundle by $2 to $21.99. The ad-supported bundle, however, remains unchanged at $12.99 per month, 50 cents more than subscribing to either service individually with ads.

The latest increases arrive as Disney's streaming operation is generating considerably more money than it was only a year ago. During its fiscal third quarter covering the three months through June, revenue from Disney+ and Hulu climbed 11% year over year to $5.53 billion. More strikingly, operating income from the streaming businesses more than doubled, rising from $329 million in the comparable quarter to $712 million. That means the latest increases are not being introduced while Disney+ and Hulu are struggling to become profitable. They come after Disney has already transformed streaming into a substantial source of earnings and demonstrated that it can continue expanding those margins. For subscribers, that creates a clear contrast: the company is collecting considerably more profit from streaming, yet customers on most standalone plans are once again being asked to contribute more each month to access the same services.

Previous Price Hikes Already Boosted Profits

Previous price increases have already played a role in improving those financial results. In Disney's fiscal second quarter, covering the three months through March, Disney+ and Hulu generated $582 million in operating income, an 88% increase from a year earlier. Disney said that improvement reflected higher subscription revenue resulting partly from price increases implemented in fall 2025. In other words, raising what existing customers pay has already contributed to the expansion of Disney's streaming profitability. The company is now returning to that strategy with another increase, including a higher charge for viewers who accept advertising in exchange for a lower subscription price. The additional 50 cents may appear modest in isolation, but applied across a large paying audience, recurring monthly increases can generate substantial additional revenue. At the same time, Disney benefits from advertising sold against those viewers, allowing the ad-supported model to produce revenue from both subscriptions and commercials.

The pricing structure also appears designed to encourage customers to take more of Disney's streaming products rather than simply subscribe to one. While a standalone ad-supported Disney+ or Hulu subscription now costs $12.49, the package containing both services remains $12.99. That means a subscriber can receive the second service for only another 50 cents per month. The difference makes either standalone option considerably less attractive and gives customers a financial incentive to move into the larger Disney bundle. For Disney, bundles can provide advantages beyond the immediate monthly payment by giving subscribers more programming to watch and potentially reducing the likelihood that they cancel after finishing a particular series or season. The company is also preparing a more integrated Disney+ and Hulu experience later this year, further consolidating the services as it works to retain customers while extracting more revenue from its streaming operations.

Disney is simultaneously considering another option at the opposite end of the pricing spectrum: a free streaming product for consumers unwilling or unable to pay its increasingly expensive subscription rates. CEO Josh D'Amaro said last month that the company is «exploring a free product for consumers», although Disney said Wednesday that it had no new information to announce about that possibility. Such an offering could give Disney another source of advertising inventory and provide an entry point for more price-sensitive viewers while the company continues raising prices for paying customers. The strategy would leave Disney with several ways of monetizing its audience: higher monthly payments from viewers who want no commercials, subscription payments plus advertising revenue from customers choosing cheaper tiers, and potentially advertising revenue from viewers paying nothing. Against that backdrop, the latest increases show that improving profitability has not removed the pressure to generate additional revenue from Disney+ and Hulu customers.

Subscribers Pay More as Streaming Profits Soar

For subscribers, the immediate reality is straightforward: most standalone Disney+ and Hulu options now cost more, regardless of whether customers are willing to watch advertising. The increases are particularly notable because they follow a period in which Disney has already demonstrated that its streaming business can generate substantial and rapidly growing profits. Operating income more than doubling to $712 million does not prevent Disney from pursuing additional margin growth, and previous price increases have already helped strengthen its streaming results. The company is ultimately free to test what consumers are willing to pay, while subscribers remain free to downgrade, bundle or cancel. But the financial trajectory provides important context for this latest increase: Disney is not asking customers to pay more simply to rescue an unprofitable streaming operation. It is raising prices again while an increasingly profitable Disney+ and Hulu business continues looking for ways to produce even greater returns.

Created by humans, assisted by AI.