Sixth increase in six years! Disney(DIS.US) raises the monthly fee for Disney+ ad-free version by 13% to $21.49.

According to information from Zhitong Finance APP, The Walt Disney Company (DIS.US) is increasing the prices of several of its streaming subscription services in the US market. This marks the company's sixth price hike in six years, aiming to boost profitability for its streaming business, which is crucial for Disney's future.

On Wednesday, Disney revealed that the monthly fee for the ad-free version of its flagship streaming service Disney+ will rise by 13%, or $2.50, to $21.49, confirming earlier reports. This price increase brings the premium Disney+ package closer to the price of a similar package sold by Netflix. Netflix’s ad-free, 4K resolution, multi-device service is priced at $26.99 per month.

The ad-free version of Hulu will also increase by $2.50. The price for the Disney+ and Hulu ad-free bundle will rise by $2 to $21.99, which is only 50 cents more than subscribing to the two services separately.

The monthly fee for individual ad-supported Disney+ and Hulu subscriptions will be $12.49, up by 50 cents. The ad-supported Disney+ and Hulu bundle will remain at $12.99 per month.

Like other operators, Disney has continued to price bundle packages competitively, as consumers are less likely to cancel when they can use multiple services.

Entertainment giants including Netflix, Apple, Comcast, and Paramount are all raising streaming subscription prices to improve profitability. Since the initial launch of its ad-free version at $6.99 in 2019, the price of Disney+ has been steadily increasing.

In August, Disney announced that the third-quarter operating profit of its entertainment division—which includes its film studio, non-sports TV networks, and Disney+—rose 64% year-over-year, primarily driven by growth in subscriber numbers and double-digit profit margins from its online video business.

Earlier this month, Disney appointed Adam Smith as the sole chairman of Disney's Direct-to-Consumer division, which covers the company's entertainment streaming services. The management team has initiated an operational restructuring and has achieved progress in increasing Disney+ user engagement.

Disney also appointed Kalandip Anand as the newly created Chief Technology Officer, who will report to CEO Josh D'Amaro. D'Amaro has made modernizing consumer engagement a company priority. In last month's investor call, D'Amaro stated that starting from spring 2027, Disney+ will evolve into a platform that, in addition to movies and TV shows, will also offer merchandise, games, and experiences. The latest film from the popular Pixar series, Toy Story 5, was launched on the platform on Wednesday.