Summary:
- Disney increases prices for Disney+ and Hulu streaming services amidst a challenging business environment.
- Disney Plus ad-free version to cost $13.99, a 27% increase; ad-free Hulu to cost $17.99, a 20% increase.
- The company plans to introduce ad-supported streaming in Europe and Canada and address password sharing issues.
- Disney reports $22 billion quarterly revenue, falling short of Wall Street expectations, but delivers better-than-expected profits.
- Disney maintains its cost-cutting drive to achieve $5.5 billion in savings, with a positive outlook on streaming and consumer business.
- Eased health restrictions in China contribute to a rebound in Disney's theme parks and resorts business.
- CEO Bob Iger's shift in stance emphasizes the significance of relationships with creative individuals.
- Disney establishes an AI task force and faces contract negotiation challenges with writers.
Disney announced price hikes for its streaming services on Wednesday as CEO Bob Iger admitted the company faces a challenging environment.
The ad-free version of Disney Plus will cost $13.99, a 27 percent jump starting October 12th, 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. The company will address password sharing next year, echoing Netflix's recent crackdown. The company's quarterly revenue of $22 billion fell short of Wall Street's expectations, but it delivered better-than-expected profits to investors. The company is focused on a cost-cutting drive aiming to slash $5.5 billion, as promised to investors. Disney's streaming and consumer business showed growth, while its theme parks and resorts benefited from eased health crisis restrictions in China.
After previously dismissing Hollywood actors' demands, CEO Bob Iger expressed a shift in his position, emphasizing the importance of relationships with creative talents. Disney has also formed a task force to explore AI applications across the company, amid stalled contract talks with writers.