Disney+ launched at $6.99. Its first streaming profit was $47 million.
Disney+ launched at $6.99 a month to win households. Five years and several price rises later, Disney streaming posted a $47M profit, though Disney+ and Hulu alone still lost $19M.
Transcript
$47 million. That was the first profit Disney's streaming business reported, in the third quarter of fiscal 2024.
It began in April 2019 with a price meant to grab the household: $6.99 a month. Bob Iger said the low price was chosen to maximize reach.
Then came the price rises. By October 2024, ad-free Disney+ cost $15.99 a month.
Look closer at that $47 million. It needed ESPN+. Disney+ and Hulu alone still lost $19 million that quarter. A year earlier, Disney's combined streaming had lost $512 million.
Land-grab pricing can work, but the bill arrives later, as price rises. And when someone shows you one number, ask what it includes.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
Run this decision
The Pricing Model Change Strategy Pack. “What does changing how you charge cost before it starts paying?” The framework, a model, a deck and the sourced cases, for running the same call on your own business. See the pack, $499 → Or start with the free guide to this decision →
