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In response to falling subscription numbers, Disney is implementing aggressive measures to shore up revenue. Most notably, they announced a 27% price increase for Disney+ subscriptions, raising the monthly fee from $10.99 to $13.99. This marks the second price hike within a year, effectively doubling the subscription cost in just 12 months.
The strategy appears aimed at offsetting losses by squeezing more revenue from existing customers, especially as subscriber numbers decline. CEO Bob Iger also indicated that Disney would crack down on password sharing and look for increased ad revenue, signaling an attempt to diversify revenue streams in the face of subscriber erosion.