Disney Flexes Its Streaming Pricing Power
Walt Disney's (NYSE: DIS) Disney+ streaming service has gained subscribers at an incredible pace since it first launched in late 2019. The pandemic certainly helped, but the company's iconic franchises and a rock-bottom pricing strategy did some work as well.
While the core Disney+ service rapidly gained over 100 million subscribers, profits have been hard to come by. The direct-to-consumer segment posted an operating loss of $1 billion in Disney's most recent quarter, almost entirely wiping out profits from the linear networks business.
Former Disney CEO Bob Chapek, who was ousted late last year to make way for Robert Iger to return, had announced a substantial price hike for the ad-free Disney+ tier before his departure. Iger ended up sticking with that decision, and he said in February that subscriber losses were minimal.
Source Fool.com
