Price Increases for Streaming Services
Disney has announced a price hike for its subscription streaming services, set to take effect on October 21. The details of the increases are as follows:
Disney+:
Ad-supported plan: Increase of $2, now $11.99
Ad-free plan: Increase of $3, now $18.99
Hulu:
Ad-supported tier: Increase of $2, now $11.99
ESPN Select:
Increase of $1, now $12.99
Additionally, various bundles that include Disney+ will also see price increases. Historically, Disney has implemented price hikes in October for its streaming services, including Disney+, Hulu, and ESPN, in both 2023 and 2024. A source confirmed to CNN that consumers were informed of these increases on Tuesday, indicating that the hikes are part of the company’s regular business practices.
Controversy Surrounding Jimmy Kimmel
The timing of the price increases has been viewed as particularly awkward due to ongoing backlash against Disney regarding its handling of late-night host Jimmy Kimmel. The controversy arose after Kimmel was benched following comments he made about Charlie Kirk’s suspected killer, which prompted a threat from the Federal Communications Commission (FCC) chairman, who is aligned with former President Donald Trump, to revoke ABC’s affiliate licenses.
This situation led to an organic boycott of Disney’s streaming service, with notable figures like Howard Stern publicly announcing their cancellation of Disney+ subscriptions in solidarity with Kimmel.
Disney’s Response
In response to the backlash, Disney reversed its decision and announced that Kimmel’s show would return to the air on Tuesday evening. However, the company continues to face challenges, as right-wing commentators are criticizing Disney for reinstating Kimmel.
Moreover, Disney is also in conflict with local media companies Sinclair and Nexstar, which own over 20% of ABC affiliates and have been preempting Kimmel’s broadcast on their stations.
Conclusion
Disney’s price increases for its streaming services coincide with significant public relations challenges stemming from the Kimmel controversy. The company’s actions and the subsequent reactions from various stakeholders highlight the complexities of managing a media giant amidst political and social pressures.
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