Disney Plans Massive Streaming Fee Hike For ESPN+

Walt Disney Co.’s ESPN will raise the price of its streaming service by 43% next month, betting that it can help cover the escalating cost of sports rights without losing subscribers who are grappling with soaring inflation, reports Bloomberg.

Starting Aug. 23, the cost of an ESPN+ subscription will jump to $9.99 a month from $6.99, or to $99.99 a year from $69.99. ESPN says the price increase reflects the growing amount of live sports and original programming on the streaming service.

Shares of Disney rose on the news, climbing as much as 3.7% as of 11:57 a.m. in New York.

Disney is taking a risk with the timing of its price hike as the highest US inflation in four decades is already squeezing household budgets, souring people’s view of the economy and forcing some to scale back entertainment and other discretionary spending.

At the same time, media companies are under increasing pressure to turn a profit with their streaming ventures. ESPN+ has been gaining momentum, with subscribers climbing 62% in the past 12 months, to 22.3 million, after years of anemic growth. But it’s still not making money.

The new price structure could push more people to buy Disney’s bundle of streaming services. That bundle, which includes ESPN+, Disney+ and Hulu, costs $13.99 a month, or $4 more than the new standalone price of ESPN+. The bundle’s price will not change for now.

The streaming service includes more than a dozen live sports, including professional hockey, college football, UFC, soccer, lacrosse and golf. This fall, the service will broadcast an exclusive NFL game. It also features original docuseries such as “Man In The Arena: Tom Brady” and the “Places” franchise executive produced by Peyton Manning’s Omaha Productions.

Yet even after the increase, ESPN+ remains more affordable than many other sports-focused streaming services. NBA League Pass, for example, costs $14.99 a month, while MLB.tv charges $24.99 a month.