Disney announces a price hike for Disney+, Hulu, and ESPN services following the controversy surrounding Jimmy Kimmel’s suspension. Meanwhile, ABC affiliates refuse to air the show, impacting Disney’s audience reach.
Disney is raising prices for its streaming services, including Disney+, Hulu, and ESPN, just as the company grapples with the fallout from the Jimmy Kimmel Live! suspension controversy. The price increases, set to take effect on October 21, come after a turbulent period for the Walt Disney Company, which faced backlash over the suspension of Kimmel’s late-night talk show.
Last week, Kimmel’s comments about the assassination of conservative activist Charlie Kirk caused a stir, leading to the suspension of his show by ABC. The host’s remarks about Donald Trump and the political activist’s death sparked a nationwide debate, with many claiming the suspension was an attack on free speech. Critics argued that the decision was political censorship rather than a programming choice.
Despite the controversy, Kimmel’s show returned within a week, but not without significant consequences. ABC affiliates Sinclair Inc. and Nexstar confirmed they would not air Jimmy Kimmel Live!, impacting around a quarter of ABC’s total audience reach. The move is expected to cause Disney to lose millions in viewership, exacerbating the financial challenges the company was already facing.
Following the suspension news, Disney’s stock dropped 2.31% in one week, with reports stating that the company lost billions in stock market value overnight when the affiliate strike became public. This came as Disney had already hinted at price hikes during its third-quarter earnings call earlier this year.
Now, Disney is moving forward with increasing prices for its streaming bundles. The price of the ad-supported Disney+ plan will rise from $9.99 to $11.99 per month, while the ad-free premium version will increase from $15.99 to $18.99. Hulu’s ad-supported plan will also go from $9.99 to $11.99, with annual subscriptions in the UK seeing a price increase to £99.90.
The price increase, which is the third in three years, comes at a precarious time for Disney. Experts believe the Kimmel controversy and ABC’s affiliate strike could lead to a loss of loyal viewers, who may view the suspension as political compliance. Publicist Crystal Gorges told FOX Business that the financial danger lies not in advertisers walking away, but in alienating loyal viewers who may cancel their subscriptions over the perception of censorship.
“Loyal viewers who tune in night after night, or who pay for Disney/ABC bundle subscriptions, could feel like their voices are being silenced,” Gorges explained. “That sense of alienation can quickly snowball into organized opposition, social media movements, or even subscriber cancellations.”
As Disney continues to navigate the financial and reputational fallout from the Kimmel controversy, the company’s decision to raise streaming prices may prove to be a double-edged sword, potentially alienating subscribers during an already challenging period.
