Is Disney+ Firing the Wrong Way in a Pricing War?
Wall Street likes to see companies with pricing elasticity, so it wasn't a surprise to see the market applauding Walt Disney's (NYSE: DIS) move to jack up prices for its premium streaming services earlier this month. The ad-free Disney+ platform will be getting 38% more expensive in December. Monthly rates for Disney's majority-owned Hulu are also moving higher. ESPN+ pushed out a 43% increase last month.
Disney is taking a big step up when it comes to pricing. Does it realize that many of its competitors are taking a step back? The media giant's confidence is admirable, but it could be dangerous if Disney isn't reading the room -- the living room -- the same way as its peers.
Image source: Getty Images.
Source Fool.com
