Disney+ raises streaming price by 38%, offers plans with ads

Walt Disney Co shares rose after the company reported better-than-expected subscriber growth for its streaming service in the third quarter and said it would raise the price of Disney+ by 38 per cent, part of a plan to generate more revenue from the money-losing online business.

On December 8, Disney will introduce an ad-supported version of the flagship streaming service and raise the price of the ad-free option to $11 a month, the entertainment giant said Wednesday. Prices for some packages that include Hulu and ESPN+ will also rise.

The price increases, subscriber gains and a strong third-quarter performance from Disney’s namesake theme parks may help reverse investor sentiment that sent the shares down 27 per cent this year through Wednesday’s close.