Disney+ Day Cruised Beyond Content
Disney celebrated its streaming service with a special event called Disney+ Day. In addition to new and exclusive programming, the company offered numerous other perks. Disney theme parks offered streaming subscriber’s early entry to Walt Disney World and Disneyland Resort, celebratory photo opportunities, entertainment, culinary delights, and more. Disney+ subscribers could book a cruise with the third and fourth guests sailing free. And land lovers could get discounts on rooms at select Disney Resort hotels. While many of the deals offered company owned benefits, they also included partner promotions such as special screenings of Disney movies in select AMC Theaters. Further, there were also promotions that had no connection to Disney IP at all, such as an extension of the free 6-month Uber One deal.
The NPD Take:
- Disney is demonstrating its ability to increase the value of its streaming service far beyond content, something few of its competitors can do. To date, the only other company to take this sort of approach has been Amazon, albeit Prime’s core value proposition is free shipping, not streaming video. We expect to see other streaming providers greatly embellish the value of their services, although mostly with partnership deals as opposed to company branded assets.
Price Hikes for Disney+ and Hulu
And while we are on the topic of Disney, Hulu announced it would increase the price of its ad-free tier by $2 to $14.99/month, beginning October 10. The price hike comes about a year after the last increase of $1. The price for the ad-supported tier increased by $1 to $7.99 per month in August. Hulu’s new pricing brings it closer in line to competitors such as HBO Max and Netflix. In December, Disney+ will see a large price hike of $3/month to $10.99 (for its ad-free tier) and its ad-tier will cost $7.99/month (the same price that Disney+ currently costs, without ads). Subscribers who get Disney+ through a Hulu with Live TV package will pay $70/month for the ad-supported tier or $83/month for the ad-free option starting in December. There will also be a new bundled plan with Disney+ and Hulu for $10/month, and a sports-focused package with Disney+ and ESPN+ for $14 monthly.
The NPD Take:
- The company continues to make its bundled plans look far more attractive; a strategy that will allow for more program distribution flexibility. That is, subscribers will be less inclined to cancel if one of the bundled services doesn’t have a new program they want to watch as the other service may be keeping them engaged.