The disruptive streaming model birthed by Netflix that dangled all-you-can-eat menus of films, shows, and endless entertainment without pesky advertisements for extraordinarily low prices came to an official close on Wednesday.
Disney boss Bob Iger announced during the company’s quarterly earnings report that the Magic Kingdom will once again hike Disney+ prices for the second time in less than a year, increasing the monthly cost of its ad-free plan $3 to $13.99 in October.
When Iger launched Disney+ in 2019, the chief executive said he had intentionally set the price of the service well below competitors “to reach as many people as possible with it.”
But Wednesday’s move to significantly bump prices, marked an acknowledgment by Iger of the media giant’s intent to squeeze more revenue out of streaming by pushing consumers to the advertising-supported plans, which have proven to be more profitable.
When Netflix first offered its pioneering service for only $8 a month, millions of people signed up, eager to have access to the company’s expansive catalog for just a fraction of the cost of the traditional cable bundle.
That served as the genesis of the streaming era, with legacy entertainment companies such as Disney racing to launch their own direct-to-consumer products at unsustainably low costs.
This is the best summary I could come up with:
The disruptive streaming model birthed by Netflix that dangled all-you-can-eat menus of films, shows, and endless entertainment without pesky advertisements for extraordinarily low prices came to an official close on Wednesday.
Disney boss Bob Iger announced during the company’s quarterly earnings report that the Magic Kingdom will once again hike Disney+ prices for the second time in less than a year, increasing the monthly cost of its ad-free plan $3 to $13.99 in October.
When Iger launched Disney+ in 2019, the chief executive said he had intentionally set the price of the service well below competitors “to reach as many people as possible with it.”
But Wednesday’s move to significantly bump prices, marked an acknowledgment by Iger of the media giant’s intent to squeeze more revenue out of streaming by pushing consumers to the advertising-supported plans, which have proven to be more profitable.
When Netflix first offered its pioneering service for only $8 a month, millions of people signed up, eager to have access to the company’s expansive catalog for just a fraction of the cost of the traditional cable bundle.
That served as the genesis of the streaming era, with legacy entertainment companies such as Disney racing to launch their own direct-to-consumer products at unsustainably low costs.
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