Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Walt Disney's ESPN to Raise ESPN+ Price by 43%

Published 16/07/2022, 03:10 am
Updated 16/07/2022, 03:10 am
© Reuters.

© Reuters.

By Sam Boughedda

Walt Disney (NYSE:DIS) owned ESPN will raise the price of its streaming service, ESPN+, by 43% next month, according to Bloomberg.

The report stated the company aims to cover rising sports rights costs while not outpricing subscribers. The ESPN+ subscription price is rising to $9.99 a month from $6.99 per month. "The price increase reflects the growing amount of live sports and original programming on the streaming service," Bloomberg said ESPN stated.

They state that programming and production costs at ESPN+ increased 48%, to $454 million, in the quarter that ended in April, while Disney's direct-to-consumer business lost $887 million during that period.

Even so, the price increase comes despite consumers grappling with soaring inflation, which is expected to cause a reduction in discretionary spending.

In addition, Bloomberg states that media companies are under pressure to make their streaming services profitable, with ESPN+ experiencing strong growth in subscribers but not yet making money.

However, as they point out, there is a possibility the move could encourage consumers to move over to Disney's streaming bundle, which includes ESPN+, Disney+, and Hulu, and costs $13.99 a month.

Disney shares are trading 3% higher Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.