Subscribers to Walt Disney Co.’s flagship Disney+ streaming service barely blinked at a 38% price increase that the company imposed in December as part of its launch of an ad-supported streaming product.
About 94% of subscribers to the old, ad-free Disney+ service stayed with the product at a higher price point and swallowed the $3 a month price increase, according to new data from subscription-analytics firm Antenna.
Disney declined to comment on Antenna’s numbers, but the data suggest the company has some headroom to raise the streaming price beyond the current level of $10.99 a month. Newly returned Chief Executive Robert Iger has hinted that increases might be coming.
“In our zeal to grow global [subscriptions], I think we were off in terms of that pricing strategy, and we’re now starting to learn more about it and to adjust accordingly,” Mr. Iger said last week at a conference hosted by the investment bank Morgan Stanley . “We have a lot of rationalization to do from a pricing perspective, but that’s one path to profitability.”
In 2019, the company launched Disney+ at a price of $6.99 a month.
