Entertainment giant Disney is set to raise its streaming prices and increase the frequency of advertising across its Disney+ platform as it battles adverse economic headwinds.
The monthly subscription cost of its US ad-free streaming service will increase in the autumn, whilst a new, ad-supported Disney+ will launch across the UK, Europe and Canada this November.
This comes as the firm struggles with underwhelming box-office receipts and an alarming drop in TV advertising sales. These factors, combined with a fall in attendance at its key US attractions, have been compounded by a feud with Republican politicians over Disney’s supposed left-wing values.
Although overall revenue at Disney rose by 4% year-on-year in the three months to July 1, it registered global losses of $460m (£361m) in comparison to a $1.4bn (£1.1bn) profit for the same period last year.
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The iconic brand can feel somewhat more positive about its streaming service however, as it grew global subscriptions by 1% to 105.7 million, offsetting a 1% decline in the US market.
Insider Intelligence analyst Paul Verna told the BBC: “Disney’s mixed results will do little to calm investors anxious for clarity on the company’s strategy for its streaming services and TV networks.
“While it’s encouraging that Disney narrowed its streaming losses in the past quarter, it did so mostly through massive reductions in workforce and content spending, rather than through organic growth.”
