Disney is slashing the price of its bundle of Disney+ and Hulu, offering it for $4.99 a month for three months to new and returning subscribers.
The special rate, which covers the ad-supported versions of the services, expires on March 24. It is 62% lower than the regular price of $12.99.
The promotion is tied to the arrival of upcoming programming like animated movie smash Zootopia 2 , Star Wars animated series Maul – Shadow Lord and Season 4 of The Secret Lives of Mormon Wives.
The discount follows the third price hike in three years of Disney’s services, which have risen sharply along with the broader marketplace. The increases were announced last September and implemented last October.
Last month, Disney reported better-than-expected streaming profits in the October-to-December quarter.
Entertainment SVOD operating income, powered by Disney+ and Hulu, camer in at $450 million, with management projecting it will hit $500 million in the current quarter. Price increases phased in during the quarter were credited with helping the bottom line, but typically they also cause a notable number of subscribers to cancel. The number of subscribers as of the end of the year was not known. Disney, following in Netflix’s footsteps, has stopped reporting subscriber numbers on a quarterly basis.
The streaming moves are happening amid corporate change for Disney in its executive ranks. Longtime CEO Bob Iger will pass the baton to Josh D’Amaro on March 18. Dana Walden, who has overseen Disney+ and Hulu as Co-Chair of Entertainment, has been promoted to president and chief creative officer.
Disney has been the most successful of any major streaming player at bundling, which has been a topic of interest to sticker-shocked customers. A popular Disney bundle includes ESPN+ along with Hulu and Disney+. The company’s beefed up ESPN app, which includes ESPN+ programming and linear network feeds, is also available in bundles. The company’s general-entertainment package, Hulu + Live TV, also includes SVOD access.
Disney and Warner Bros. Discovery also launched a bundle of HBO Max, Disney+ and Hulu in 2024, one of the few industry offerings with rival companies’ services in a single package.
