Disney Defends Second Price Hike In Past 12 Months For Disney+
For the second time in the past 12 months, Disney is raising prices for its streaming services, including Disney+. CEO Bob Iger discussed this on the company’s earnings call, saying Disney actually has more pricing leverage–that is, the ability to raise prices–than before thanks to the appeal of the platform as he sees it.
“Every time we’ve taken a price increase, we’ve had only modest churn from that. Nothing that we would consider significant,” he said. A “churn” rate refers to losses from people leaving a given service.
Iger said the introduction of new features to Disney+ like the upcoming ESPN tile and continuous playlists, along with high-profile movies coming to the platform, gives Disney the ability to raise prices without issue.