Disney has announced a price increase for its streaming services, with the Disney+ and Hulu Bundle with Ads rising from $9.99 to $10.99 per month and ESPN+ increasing to $11.99.

These price hikes come at a time when media companies face challenges from changing consumer behavior and rising operational costs.

Despite having popular original content like 'Ahsoka' and 'Loki Season 2,' Disney+ has struggled to meet its potential since its launch, costing the company billions.

In its fiscal second quarter, Disney approached profitability, benefiting from higher prices, subscriber growth, and reduced distribution costs.

Looking ahead, Disney expects its streaming division to achieve profitability by the fourth fiscal quarter.

To mitigate subscriber churn, Disney is promoting bundled subscription offerings, which are priced lower than individual services.

Disney+ President Alisa Bowen emphasized that new features like curated playlists aim to enhance subscriber value and viewing experience.

Following the price increases, Disney plans to expand its content offerings, including new channels for various genres.

CEO Bob Iger acknowledged that the path to profitability for Disney's streaming services may not be straightforward, anticipating a softer third quarter.

Following the announcement of the price increases, Disney's shares rose by 2.5%, reflecting investor optimism ahead of the quarterly earnings report.

Disney is set to report its fiscal third-quarter earnings on August 7, 2024, which will provide further insights into its financial performance.