Another major American corporation is hiking prices again again, but this time the reason isn’t inflation.

Disney is raising the price of its streaming goods and has hinted that a price increase at its theme parks may be on the way. The firm said on Wednesday that the price of Disney+ without advertisements would increase by $3 per month to $10.99 beginning December 8. Hulu with commercials will rise by $1 per month to $7.99, while Hulu without ads will rise by $2 per month to $14.99.

Then, on Thursday, Disney CEO Bob Chapek told CNBC’s Julia Boorstin that price increases at theme parks are probable as long as people continue to flock there.

“We read demand. We have no plans right now in terms of what we’re going to do, but we operate with a surgical knife here,” Chapek said. “It’s all up to the consumer. If consumer demand keeps up, we’ll act accordingly. If we see a softening, which we don’t think we’re going to see, then we can act accordingly as well.”

Rather than blaming increased material, labor, and gas costs, Disney is explaining the hikes by citing the constancy of its goods’ appeal. Disney+ attracted 15 million new customers last quarter, exceeding expectations, the company announced on Wednesday. It also stated that it expects core Disney+ (excluding India’s Disney+ Hotstar) to go above the 6 million subscribers gained in the fiscal third quarter.

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Price increases in response to high demand are nothing new for Disney. The price of theme park tickets has been steadily rising for decades. During the most recent quarter, the company’s parks, experiences, and goods sector had a 70% growth in sales, reaching to about $7.4 billion. Domestic park spending per capita increased by 10%, totaling more than 40% higher than in fiscal 2019.

Disney purposefully limits park visitation, a move inspired by efforts to reduce congestion during the Covid outbreak. The change is intended to improve the consumer experience. In addition, the business has introduced Genie+ and Lightning Lane offerings, which customize visitor experiences and allow parkgoers to skip lineups for main attractions.

Aside from the parks, Disney yearly requests that cable TV providers pay hefty price increases for ESPN because it knows there is a high demand for its stable of live sports licenses.

Disney+ first became available in November 2019 for $6.99 per month. After three years, the price of the ad-free product will have increased by 57%. The service presently has over 152 million users.

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Chapek has had his share of setbacks since taking over as CEO of Disney from Bob Iger. But one thing remains constant: people continue to adore what Disney has to offer.

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