A Disney+ Price Hike Is Coming -- Eventually
Disney (NYSE: DIS) fans around the globe have quickly taken to Disney+, which has attracted over 60 million subscribers worldwide in less than a year since its initial launch. Part of the attraction is its relatively low price point around $7 per month (or $70 per year), making it one of the best deals in home entertainment.
But the price won't stay that low forever. As Disney invests more in content, CFO Christine McCarthy says it'll raise prices. The strategy echoes the successful price increases of Netflix (NASDAQ: NFLX) over the years, and it could be a big boost to Disney's direct-to-consumer business.
In an interview for a recent investors conference, McCarthy said, "It's clear that we priced Disney+ at a very accessible price point initially. There is pricing power, we believe, but that will come as we put more original content into the services."
Source Fool.com
