#Hulu price increase tv
Regardless of whether they simply pay more each month or find themselves more inclined to subscribe to the Disney bundle, it's a great move for Disney investors. Hulu has just announced it will increase its live TV bundle by 10 a month starting in December. Not to mention, EU regulators require streaming services like Disney+ to provide a certain amount of locally produced content.Ĭonsidering this is Hulu's first ever price increase, it's unlikely to perturb subscribers too much. CFO Christine McCarthy previously said expanding the content library is essential to continued price increases.
Management previously guided for Hulu to reach profitability in fiscal 2023, so it's well ahead of schedule.Ī more profitable Hulu can give management more room to invest in content for Disney+. Starting December 18, subscribers will pay 64.99 a month for Internet live TV and on-demand service.
#Hulu price increase plus
Raising prices should make it even more profitable. The price of Hulu Plus Live TV will skyrocket very soon. In fact, Hulu already showed a profit last quarter. As such, Disney has more incentive to make Hulu profitable now. Until recently, Comcast was helping fund the company's losses, but Disney's decision to keep Hulu a U.S.-only service and use the Star brand internationally led Comcast to pull funding. While Disney controls Hulu, it still only owns two-thirds of the company. As mentioned, more bundled subscribers could put pressure on average revenue per user, but increasing the price can offset that. Raising the price of Hulu could also make it more profitable.
Even if it negatively affects average revenue per user due to the way Disney does its accounting, investors should be pleased with the result. Some investors have expressed concern about the stagnation of Disney+ subscriber growth in the United States (the only market where Hulu and ESPN+ are sold).Īnd of course, getting more subscribers to pay an extra $7 per month by bundling is a great way to grow revenue with minimal marginal costs. If it loses fewer subscribers each month, it doesn't have to add as many in order to grow.įurthermore, converting more Hulu or ESPN+ stand-alone subscribers into bundled subscribers can fuel the gross additions for Disney+. Being able to keep churn low is essential to the continued growth of its subscriber base. Indeed, churn is a major concern for Disney and every other streaming competitor going forward.
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