1 Green Flag for Disney, and 1 Red Flag

Disney (NYSE: DIS) appears to be shifting its focus from subscriber growth to cost-cutting on its Disney+ streaming platform. One possible reason for the change could be that the threat of a macroeconomic slowdown is forcing management's hand. If that were to happen, the money the company spends to promote the service and bring in new subscribers wouldn't have the same value as in the past.

For instance, sky-high inflation may force potential new subscribers to tighten their purse strings and forgo a subscription to Disney+ (or any other streaming service ). Instead of spending money to solicit those dollar-conscious new subscribers, Disney may be refocusing its budget on building out Disney+'s streaming platform.

On the bright side of this new approach, Disney+ is raising its prices later this year. The company recently announced that the price of its ad-free stand-alone Disney+ service in the U.S. will jump from $7.99 per month to $10.99. In addition, Disney will be offering a new ad-supported version of the service starting at $7.99 per month.

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Source Fool.com