Disney CEO Bob Iger says more price hikes coming to streaming services amid profitability push

Disney (DIS) CEO Bob Iger revealed that more price hikes will be coming to the company’s streaming services.

“The pricing changes we’ve already implemented have proven successful, and we plan to set a higher price [for] our ad-free tier later this year to better reflect the value of our content offerings,” Iger said during Wednesday’s quarterly earnings call.

Disney currently offers ad-free options for Hulu and Disney+.

He added the company will “continue optimizing our pricing model to reward loyalty and reduce churn, to increase subscriber revenue for the premium ad-free tier and drive growth of subscribers who opt for the lower cost ad-supported option.”

The company raised prices for Disney+ and introduced an ad-supported tier in Dec. 2022. That followed price increases for Hulu and ESPN+ earlier in the year.

The Disney+ price hikes led to a dip in subscriber growth in the company’s fiscal second quarter, with the media giant reporting a loss of 4 million Disney+ subscribers,…

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This article was written by and originally published on finance.yahoo.com