Disney CEO Bob Chapek Warns Fans Another Price Hike is Coming – Inside the Magic
During the last earnings call for the Walt Disney Company hosted by CEO Bob Chapek and CFO Christine McCarthy, we learned a lot of information, most of which showed that the company was in excellent standings financially. We were able to see the earnings results for Q1 of the fiscal 2022 year, and as we had reported, when it comes to their theme parks, as revenues for the quarter increased to $7.2 billion compared to $3.6 billion in the prior-year quarter, which was due to a number of increases across the Disney Parks.
When it comes to Disney+, things were also looking up as the report stated Direct-to-Consumer revenues for the quarter increased 34% to $4.7 billion however operating loss increased 27% to $0.6 billion.
Bob Chapek, Chief Executive Officer of The Walt Disney Company, said:
“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter.
This marks the final year of The Walt Disney Company’s first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years.”
But, he also stated something that many Disney+ users and fans should be aware of, which indicates that a price increase is likely coming our way. Chapek noted:
“By ’23, we want to get to a steady-state, which is even higher than we have right now. And I think that will give us the impetus to increase that price/value relationship even higher and then have the flexibility if we were to so choose to then look at price increases on our service,”
In this short sentence, it seems that Disney fans were warned that during this year, Disney plans to increase revenue on Disney+ by raising the prices for the service. According to the statement, it seems that Disney is planning to increase the price as the value of the platform moves up, which suggests that more content will be added to the service.
At the moment, Disney+ is incredibly popular, especially with all of the Marvel and Star Wars releases that seem to be never ending, and beloved by fans. Book of Boba Fett recently debuted which triggered heavy excitement for The Mandalorian season 3. Below is a full list of the upcoming February release schedule:
Released February 2
The Book of Boba Fett – Chapter 6 *Disney+ Original The Chicken Squad (S1, 4 episodes) The New Air Force One: Flying Fortress
Released February 4
Never Been Kissed Torn Snow Dogs
Released February 9
Alice’s Wonderland Bakery (S1, 6 episodes) Marvel Studios: Assembled – The Making of Hawkeye (Premiere) *Disney+ Original The Book of Boba Fett – Chapter 7 (Finale) *Disney+ Original
Released February 16
Marvel Studios: Assembled – The Making of “Eternals” (Premiere) *Disney+ Original
Released February 18
The Wonderful Winter of Mickey Mouse (Premiere) *Disney+ Original
Released February 23
Free Guy The Proud Family: Louder and Prouder – Episode 1 – “New Kids on the Block” (Premiere) *Disney+ Original
Released February 25
Marvel Super Hero Adventures: Frost Fight!
Credit: Target.com
On top of this, in the theme parks like Walt Disney World Resort, we have seen big price increases on food, alcoholic beverages, as well as Annual Passes and overall price tickets, so it seems that in general, and as it has historically happened, the inflation of all things Disney continues to rise. At the moment, Disney+ costs $8 a month or $80 a year for ad-free streaming. You can also bundle Disney+ with Hulu and ESPN+ for a starting price of $14/month.
Do you think Disney+ will still be worth it with a price increase?
Want to see Star-Lord/Peter Quill (Chris Pratt), Iron Man (Robert Downey, Jr.), Captain America (Chris Evans), Thor (Chris Hemsworth), Doctor Strange (Benedict Cumberbatch), the Winter Soldier (Sebastian Stan), Hawkeye (Jeremy Renner), and Captain Marvel/Carol Danvers (Brie Larson) some more? What about Loki? Spider-Man: Freshman Year will soon be coming to Disney+ (among other announcements such as X-Men ’97, What If…? Season 2, Echo, She-Hulk, and Agatha: House of Harkness); click here to watch today!
