Disney+ the latest streamer to hike pricing - as NZ waits for cheaper ad tier

Temuera Morrison is the Disney+ Star Wars spin-off The Book of Boba. Photo / Supplied

Disney+ is hiking its pricing for a third time since launching in New Zealand three years ago.

The streaming service debuted here in November 2019 for $9.99 per month or $99.99 per year.

Last year, it raised its monthly price to $12.99 per month or $129.99 per year, citing an expanded lineup of content.

This morning, it said it would raise its pricing again from December, this time to $14.99 per month or $149.99 per year.

An email to customers gave no reason for the increase, which is more than double the rate of inflation. Disney has been asked for comment.

Disney+ customers in the US are also being whacked with a price rise. But Americans will be able to avoid the price rise, of US$10.99 per month, if they opt for the US$7.99 Disney+ Basic With Ads, launching next month.

Disney has yet to say if or when it will launch its ad-subsidised cheaper tier in NZ.

Last year, arch-rival Netflix increased the cost of its basic plan by 8 per cent, from $11.99 to $12.99 per month, and the cost of its Premium plan by 14 per cent from $21.99 to $24.99 (Netflix introduced its new Netflix Basic With Ads for A$6.99 across the Tasman earlier this month, but has yet to name a launch date for NZ.)

Sky increased the price of Neon from $15.99 to $17.99/month mid-year.

And last month, Apple TV+ increased its NZ pricing from $8.99 to $12.99 per month.

Amazon’s Prime Video, meanwhile, still costs $8 per month - the same price as when it launched in NZ in 2016.

Disney has made huge gains in its global streaming audience over the past year.

But at the same time, Disney’s streaming platforms have been losing buckets of money - and the red ink only increased in its latest quarter.

Dr Who is teleporting from TVNZ to Disney+ under a new global deal. Photo / File

Its streaming losses rose by US$800 million ($1.3 billion) to US$1.5b (on streaming revenue that increased 8 per cent to US$4.9b) largely because of rocketing content spending and marketing expenses. As a result, operating income at Disney’s media and entertainment group plunged 91 per cent to US$83m in the quarter.

Disney can brag that it passed Netflix in global subs for the first time in June.

With its September quarter results, Netflix edge ahead again.

Disney+, which houses Marvel movies, has increased its global subs from a year-ago 118m to 164m - but at the same time, its losses have swelled. Photo / File

But Disney regained its lead earlier this month as it reported 14.6 million subscribers across its three major streaming platforms in its fourth quarter for a total of 236 million (Disney+ now has 164m, Hulu 47m and ESPN+ 24m).

Netflix reported a gain of 2.41 million subs for a total of 223 million as of the end of its third quarter, and said it was on track to add another 4.4 million in the fourth.

Amazon does not break out a figure for Prime Video, but has around 200 million subscribers to its Prime service, which includes delivery, plus music and video streaming.