The Disney+ logo is displayed on a TV screen in Paris, December 26, 2019.
Chesnot | Getty Images
Disney is raising prices on almost all of its streaming offerings as it looks to accelerate profitability for the business.
Commercial-free Disney+ will cost $13.99 per month, a 27% increase, beginning Oct. 12. Disney+ with ads will remain $7.99 per month. Disney will also expand its ad-tier offering to select markets in Europe and in Canada beginning Nov. 1.
Disney is increasing the price of Hulu without ads to $17.99 per month, a 20% price hike. Hulu with ads will also staythe same price, at $7.99 per month.
For comparison, Netflix’s standard plan without commercials is $15.49 per month. Warner Bros. Discovery’s Max is $15.99 per month.
The decision to price Disney+ nearly as high as commercial-free Netflix and Max, and charge even more for Hulu, signals Disney believes its content library can compete with both of those services. When Disney Chief Executive Officer Bob Iger launched Disney+ in 2019, he deliberately set the niche family offering at a low price of $6.99 per month — nearly half the price of Netflix.
Last year, Disney increased the cost of Disney+ by $3 per month. Iger acknowledged he was surprised the price increase led to minimal cancelations of the service.
“We took a pretty significant price increase at Disney+ sometime late in 2022, and we really didn’t see significant churn or loss of subs because of that, which was actually heartening,” Iger said during Disney’s earnings call on Wednesday.
Iger noted that Disney is deliberately trying to steer users toward its ad-supported services by keeping prices for those services the same. The advertising landscape for streaming is healthier than traditional linear TV, Iger added.
Disney has added 3.3 million subscribers for its U.S. advertising-supported service after it launched in December, Iger announced on the call. About 40% of new Disney+ subscribers have signed up for the ad tier, he said.
Disney Executive Chairman Bob Iger.
Charley Gallay | Getty Images
Disney is now betting consumers will pay more for its streaming services even as the Hollywood writers and actors strikes threaten its content pipeline in the coming months.
For consumers who want both Disney+ and Hulu without commercials, they can pay $19.99 per month in a new “premium duo” offering — a $12 per month savings. That offer will be available starting Sept. 6. The Disney+ and Hulu bundle with ads will not change from its $9.99 per month price.
Disney also increased the price of its bundle of Disney+ (no ads), Hulu (no ads) and ESPN+ (with ads) to $24.99 per month from $19.99 per month. The bundle of all three products with commercials will be $14.99 per month, an increase of $2 per month.
Disney said Wednesday its streaming division lost $512 million in its fiscal third quarter. Disney+ excluding India’s Hotstar added 800,000 subscribers during the period. Disney+ ended the quarter with 105.7 million Disney+ subscribers, excluding Hotstar, and about 146 million in all.
Disney is also increasing the price of Hulu + Live TV with ads to $76.99 from $69.99 per month. The commercial-free Hulu + Live TV will jump to $89.99 per month from $82.99 per month.
WATCH: Bob Iger will lead Disney through this difficult time, says BofA Securities’ Jessica Reif Ehrlich.
Correction: This story was updated to reflect that the ad-free Disney+ price increase will take effect Oct. 12. A previous version misstated the date.
Google has been moderating and removing employees’ internal election-related conversations, CNBC has learned.
Ahead of Tuesday’s U.S. elections, Google executives warned employees to keep political opinions and statements away from a popular internal discussion forum called Memegen, according to correspondence viewed by CNBC. Despite the warnings, employees continued posting memes related to the election and criticizing the company’s policies on Tuesday.
The most recent leadership guidance shows the company is taking expanded action to temper internal political discussions. Google CEO Sundar Pichai on Monday sent a memo reminding employees that people turn to the company’s services for “high-quality and reliable information.” That includes through the company’s Google Search, Google News and YouTube services.
“Whomever the voters entrust, let’s remember the role we play at work, through the products we build and as a business: to be a trusted source of information to people of every background and belief,” Pichai wrote. “We will and must maintain that.”
As one of the most important tech leaders in the U.S., Pichai himself has been pulled into the broader political discussions of late. Republican nominee Donald Trump claimed to have multiple phone calls with Pichai in recent weeks.
Google has been cracking down on internal conversations since 2019 when the company introduced a policy barring employees from making statements that “insult, demean, or humiliate” their colleagues. The rules also discouraged employees from engaging in a “raging debate over politics or the latest news story.”
That policy signaled a significant culture shift for the company. Some employees pushed back against the restrictions, saying they were too broad, and in 2020, the company said it was expanding its internal content moderation practices, requiring employees to more actively moderate internal discussions, CNBC found at the time.
Since 2021, Google has dealt with internal dissent regarding Project Nimbus, which is a $1.2 billion joint contract with Amazon to provide the Israeli government and military with cloud computing and AI services. Google briefly shut down an internal message board this March after employees posted comments about the company’s Nimbus contract.
In a 2019 settlement, the U.S. National Labor Board ordered Google to post a list of employee rights at its headquarters that included the right to discuss workplace conditions. That came after a former Google employee filed a complaint alleging that the company restricted free speech and fired him for expressing conservative views, which Google refuted.
The company declined to comment.
Banning political discussions
Google announced more updates to its Memegen guidelines in September that included broadening the forum’s restrictions against political discussions, according to internal documents viewed by CNBC. The company also said it would ban employees from the platform if they violate policies three times, and Google said that it would also also use artificial intelligence technology to better detect violative content.
“Memegen will no longer allow posting of personal political opinions, including national policy/events, geopolitical content (eg, international relations, military conflicts, economic actions, territorial disputes, and other international affairs unrelated to Google), or sharing related news with or without commentary,” one document said.
Political debates have driven the “vast majority” of content removals, one document of the expanded policies said.
“Memegen isn’t a place for personal political opinions or statements,” reads a yellow banner that Google recently added at the top of Memegen, according to images viewed by CNBC.
One employee wrote that Google’s internal community management team, or ICMT, took down their meme, which they didn’t feel was violative. Many memes viewed by CNBC included messages such as “sending support” and “encouragement” to fellow employees. Others poked fun at the company’s expanded policy and the ICMT.
“This meme is a political statement please report to ICMT immediately,” one meme said. Another read: “Make Election Day a holiday to give ICMT a break.” Another meme just said “aaaaaaaa” overlaid on a black void.
Read Google CEO Sundar Pichai’s full memo to employees below
Hi Googlers, Tomorrow is election day here and many in the U.S. will be heading to the polls to vote for everything from school board to judges to the Congress and President.
Teams across Google and YouTube have been working hard to make sure our platforms provide voters with high-quality and reliable information, just as we’ve done for so many other elections around the world — in fact, dozens of countries have held major, hotly contested elections this year, from France to India to the UK to Mexico and many more, with well over a billion people casting votes in 2024.
We should be proud of our work, and also of our teams’ efforts to keep campaigns secure, to deliver accurate information on where and how to vote, and to provide digital advertising solutions to campaigns. Thanks to everyone working around the clock on these efforts throughout the campaign season and as votes are tallied.
As with other elections, the outcome will be a major topic of conversation in living rooms and other places around the world. And of course, the outcome will have important consequences. Whomever the voters entrust, let’s remember the role we play at work, through the products we build and as a business: to be a trusted source of information to people of every background and belief. We will and must maintain that. In that spirit, it’s important that everyone continue to follow our Community Guidelines and Personal Political Activity Policy.
Beyond election day, our work to organize the world’s information and make it universally accessible and useful will continue. Al has given us a profound opportunity to make progress on that mission, build great products and partnerships, drive innovation, and make significant contributions to national and local economies. Our company is at its best when we’re focused on that.
Perplexity AI logo is seen in this illustration taken January 4, 2024.
Dado Ruvic | Reuters
Perplexity AI, the artificial-intelligence search engine startup, is in the final stages of raising $500 million in funding at a $9 billion valuation, a source familiar with the situation told CNBC.
The startup competes against the likes of Google and ChatGPT-maker OpenAI. Perplexity most recent valuation was $3 billion in June. Institutional Venture Partners, a Bay Area-based firm, is leading the new round, according to the source, who requested anonymity since the funding is not yet public.
Perplexity started the year with a roughly $500 million valuation.Since then, the company has continued to attract investor interest amid the generative AI boom, raising four funding rounds so far this year.
Last week, OpenAI launched a search feature within ChatGPT, its viral chatbot, that positioned it to better compete with Perplexity, as well as leading search engines like Google and Microsoft‘s Bing. OpenAI’s search feature offers up-to-the-minute sports scores, stock quotes, news, weather and more, powered by real-time web search and partnerships with news and data providers, according to the company.
Despite the AI boom, Perplexity has been embroiled in controversy due to accusations of plagiarizing content from media outlets. The New York Times last month sent Perplexity a “cease and desist” notice, claiming that the startup scrapes the news outlet’s content to generate answers. Perplexity has denied the allegations.
In July, Perplexity debuted a revenue-sharing model for publishers. Any time a user asks a question and Perplexity generates ad revenue from citing an article in its answer, Perplexity will share a percentage of that revenue with the publisher, the company said.
Media outlets and content platforms including Fortune, Time, Entrepreneur, The Texas Tribune, Der Spiegel and WordPress were among the first to join the company’s “Publishers Program.” Dmitry Shevelenko, Perplexity’s chief business officer, told CNBC in a July interview that if three articles from one publisher were used in one answer, the partner would receive “triple the revenue share.” Perplexity worked on its revenue-sharing model since January, and the company’s goal is to have 30 publishers enrolled by the end of the year, Shevelenko said.
Perplexity’s app has been downloaded more than 2 million times, and it answers more than 230 million queries a month, the company said in August. U.S. queries have increased eightfold in the past year, according to a pitch deck for potential advertisers that was viewed by CNBC.
Cryptocurrencies were slightly higher Tuesday evening as investors waited for direction on the potential outcome of the U.S. presidential election.
The price of bitcoin was last higher by 2% at $69,105.03, according to Coin Metrics. Earlier, it rose as high as $70,522.84. It is currently 5% off its all-time high, after trading near it last week.
Stocks tied to the price of the cryptocurrency got a boost in earlier trading during regular stock market hours. Exchange operator Coinbase and MicroStrategy, which often trades as a high beta play on the price of bitcoin, advanced 4% and 2%, respectively.
Investors are expecting bitcoin trading to be choppy until a clear winner is declared. A victory for Vice President Kamala Harris is expected to bring risk of downside moves to the price of bitcoin, while traders anticipate a bump in price in the event of a win by former President Donald Trump.
“The election is having a massive influence on crypto,” said Ryan Rasmussen, head of research at Bitwise Asset Management. “Expect bitcoin – and crypto more broadly – to be choppy in the days ahead … until we have definitive election results.”
“If Trump wins, I believe we’ll see new all-time highs,” Rasmussen added. “If Harris wins, I expect a decent short-term sell-off, with prices taking a month or two to recover. But eventually, either way, I think we go higher.”
Bitcoin is widely expected to rise to a new record in coming weeks. In the 2012, 2016 and 2020 elections, bitcoin saw returns of roughly 87%, 44% and 145% in the 90 days following election day, respectively. That’s in part because election years happen to fall on Bitcoin halving years, when the supply of the cryptocurrency ratchets downward. Post election returns have also tended to align with major Federal Reserve policy shifts. This year, the market is looking forward to further interest rate reductions.
Earlier Tuesday, bitcoin wavered around the $70,000 mark, after hitting that level last week for the first time since March and approaching its record of $73,797.68. At about $69,000, bitcoin has been trading at its fair value price, according to CryptoQuant. That means that if the election proves to be a positive catalyst in the coming days, bitcoin can rally and is poised to establish a new record, CryptoQuant analyst Julio Moreno said.
“For now, everyone we’ve spoken to is keeping their powder dry,” said James Davies, CEO at crypto futures and options trading platform Crypto Valley Exchange. “I’ve heard from numerous leading market makers and traders and can say with conviction that almost everyone is set up to react. They don’t even know which way markets will go based on [the] result. There’s likely to be massive short-term volatility whichever outcome.”
This year’s presidential election has been called the most important one in the crypto industry’s lifetime. Many view a Harris win as a threat to crypto, the extent to which has been debated throughout this election cycle. Trump, on the other hand, is seen by many as a force for good in the industry after he presented himself earlier this year as the pro-crypto candidate and has been courting the industry more directly than Harris has.
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