Disney is increasing the price of its sports streaming service ESPN+ to $9.99 per month, a 43% increase. The previous price of ESPN+ had been $6.99 per month.
The increase will kick in on Aug. 23. An annual subscription to ESPN+ will jump from $69.99 to $99.99.
It’s unusual for the price of a streaming service price to rise more than 40% in a single increase.
Yet the dramatic rate hike accomplishes several goals for Disney. Assuming customers stick with the service, it should help Disney boost revenue for its streaming products, which still lose money.
Second, Disney hopes it will remind subscribers there’s a lot of new and valuable content on the service, including live National Football League games, exclusive Grand Slam tennis matches from Wimbledon and the Australian Open, PGA Tour events, and National Hockey League games.
Increasing the price of ESPN+ will also help Disney pay for its most recent renewal of “Monday Night Football,” which cost the company $2.6 billion per year. As part of that deal, Disney has the right to simulcast “Monday Night Football” on ESPN+ when the company chooses.