Disney (DIS) on Thursday raised prices on its various subscription plans, highlighting a trend that has gained momentum over the past year as media companies focus on improving profitability.

Disney first announced the price increases in August, revealing increases for its various Disney+ and Hulu subscriptions. These changes will take effect alongside the Disney+ debuts of Marvel’s “Agatha All Along” and Pixar’s “Inside Out 2.”

Most plans increase subscription costs by $1 to $2 per month. Hulu Live TV subscriptions will increase more significantly, increasing by $6 per month.

The price increases come as Disney aims to achieve sustainable profitability in its streaming business, which just posted a profit for the first time in the quarter ended June 29. The company also plans to add new features to the Disney+ app, such as access to ABC Live and a playlist with content aimed at young children.

“Every time we’ve implemented a price increase, we’ve experienced only modest attrition,” Disney CEO Bob Iger said during the company’s third-quarter earnings call in August. “Nothing that we would consider significant.” He added that the goal of streaming is to “increase engagement on the platform,” hence the new features and bundling options.

Other streamers have followed similar strategies. Prior to Disney’s announcement, Peacock, Comcast’s (CMCSA) flagship streaming service, implemented price increases in July, just before the 2024 Olympic Games in Paris, after first raising prices the previous summer.

And in June, Warner Bros.’ (WBD) Streaming platform Max raised prices on its ad-free streaming plans, including ahead of its flagship programming: the second season debut of the blockbuster “Game of Thrones” prequel, “House of the Dragon.”

But Wall Street analysts have warned that continued increases could lead to more subscribers canceling their subscriptions, with churn rates continuing to hover at high levels.

“Prices for ad-free plans are starting to skyrocket,” Bank of America analyst Jessica Reif Ehrlich previously told Yahoo Finance. “As a result, we believe consumers will drop several streamers and perhaps rotate a bit more depending on the content cycle.”

To combat fickle consumers, competing platforms are now bundling their services. As WBD CEO David Zaslav told investors in May, “Together we are stronger.”

Meanwhile, crackdowns on password sharing have become a popular choice in the race to secure profits, despite recent consumer frustration.

The story continues

Disney+ launched the practice last month in the US and other regions, offering households the option to add an additional “remote” user at a discounted rate.

The crackdown reflects the strategy of Netflix (NFLX), which last May began implementing a crackdown on password sharing for U.S. subscribers after first announcing the initiative in October 2022. WBD’s Max has also joined the trend and revealed that it will be cracking down. -share later this year.

Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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