• Disney (DIS) is raising the price of its ad-free Disney+ plan by 13% to $21.49 per month, an increase of $2.50.
  • Ad-free Hulu will rise by the same amount, while the Disney+ and Hulu ad-free bundle increases to $21.99.
  • The move comes as major streaming companies continue raising prices to boost profitability.

Disney+ Hikes Ad-Free Price 13%

Disney is raising the price of its ad-free Disney+ plan by 13% to $21.49 per month, an increase of $2.50. Ad-free Hulu will rise by the same amount, while the Disney+ and Hulu ad-free bundle increases to $21.99. The move comes as major streaming companies continue raising prices to boost profitability.

The price hike, which takes effect immediately for new subscribers and will be applied to existing subscribers on their next billing cycle, underscores Disney's strategic shift from chasing subscriber growth at all costs to maximizing revenue and profitability per household. According to people familiar with the matter, the company is betting that its premium content and integrated streaming experience will retain enough users to offset any potential churn.

Disney's latest official pricing positions Disney+ with ads at $12.49 per month, Disney+ Premium at $21.49 per month or $214.99 per year, Disney+/Hulu with ads at $12.99 per month, and Disney+/Hulu Premium at $21.99 per month. The $21.49 price implies a $2.50, roughly 13%, increase from $18.99. However, the headline's statement that ad-free Hulu rises by the same amount is not reflected on the current official bundle page, which is the more reliable source for currently available prices; consumers should check their account notice and billing date for plan-specific treatment.

The price increase is part of a broader industry trend. Major streaming companies have been steadily raising prices to boost profitability as the market matures. Disney's own financial results show why: in its fiscal third quarter ended June 27, total revenue rose 7% to $25.25 billion, while adjusted diluted earnings per share jumped 28% to $2.06. The direct-to-consumer segment, which includes Disney+ and Hulu, saw subscription revenue grow 11% to $5.53 billion, and operating income more than doubled to $712 million. Streaming ad revenue, however, grew only 3% in the quarter, with more ad impressions partly offset by lower ad rates—evidence that subscription pricing remains central to the profit model.

Management reaffirmed expectations for roughly 12% fiscal-2026 adjusted-EPS growth excluding the extra fiscal week, and double-digit adjusted-EPS growth again in fiscal 2027. Those targets make maintaining pricing power strategically important.

The streaming sector's economics have changed. Early competition prioritized subscriber acquisition; mature platforms now need to cover high content costs, technology investment, sports-rights costs, marketing, and distribution while producing reliable margins. Disney's own results show that higher effective rates, as well as more subscribers, contributed to subscription revenue growth.

Bundling is also a key part of Disney's strategy. The $21.99 Disney+/Hulu Premium bundle costs far less than buying the two ad-free services separately at their listed standalone prices. This pricing structure not only reduces cancel-and-resubscribe behavior and lowers customer-acquisition costs but also raises the perceived value of a price increase.

Operationally, Disney is accelerating a unified product strategy. It has enabled Hulu standalone and bundle users to link profiles, watch histories, and subscription management within Disney+, while retaining access to Hulu's complete library via Hulu. On September 17, Disney appointed Adam Smith as Chairman of Direct-to-Consumer, responsible for global Disney+ and Hulu strategy, product, engineering, ad technology, partnerships, data, and analytics. Joe Earley moved to a newly created television franchise and content-strategy role.

Disney+ launched in the U.S. in 2019 at $6.99 per month without ads. It subsequently introduced ad-supported options and repeatedly raised prices: the ad-free plan rose from $10.99 in 2022 to $13.99 in 2023, $15.99 in 2024, and $18.99 in 2025 before the current $21.49 listed price. This means the ad-free list price has more than tripled since launch, though the product now includes broader content integration and more bundle options.

The increase should support Disney's target of double-digit SVOD margins, alongside cost control, content selectivity, product improvements, and advertising-tech investment. Disney's stated goal is to make Disney+ the "digital centerpiece" of the company and ultimately a broader membership ecosystem that connects entertainment with Disney's parks, consumer products, sports, and other offerings. It expects to begin introducing elements of that plan in spring 2027.

The key uncertainty is price elasticity: whether continued increases will materially accelerate churn or downgrade behavior. Recent industry analysis suggests Disney+ had little immediate subscriber impact from the 2025 hike, but repetition eventually increases risk, particularly in a market where bundles and ad-supported plans are becoming standard.

A Disney spokesperson declined to comment on the price increase beyond the official pricing update. As of September 2026, eight large streaming services without ads cost about $139.41 per month, according to one estimate, highlighting the growing risk of subscription fatigue.

Correction: An earlier version of this article stated that ad-free Hulu would rise by $2.50 to $21.49. The official bundle page does not reflect that increase; consumers should check their account notice for plan-specific pricing.