Disney said it will increase prices of its streaming services, including Disney+, Hulu, and ESPN+, from mid-October to boost profits and margins in a competitive segment dominated by Netflix.

The new pricing structure, which was announced on Tuesday, will see most plans rise by $1 to $2 per month, with the most expensive Hulu plans, which include live TV, increasing by $6 monthly.

Beginning on October 17, US subscribers to Disney+ will have to pay $9.99 for the basic plan, while the premium plan will cost $15.99.

Hulu's ad-supported plan will also be set at $9.99 per month, whereas the ad-free version will cost $18.99.

ESPN+, which includes ads, will increase to $11.99 per month.

The price adjustment is part of Disney's strategy to encourage customers to opt for bundle packages, providing greater value for combined services, according to CNBC.

The existing bundle of Disney+ and Hulu, both with ads, will also see a price increase of $1, bringing it to $10.99 per month. The ad-free bundle will remain at $19.99 per month.

Disney has also collaborated with Warner Bros. Discovery to offer a bundle that includes Disney+, Hulu, and Max. This new bundle, introduced in July, will be available at $16.99 with ads and $29.99 for a commercial-free experience. It offers a 38% savings compared to purchasing the services separately.

Disney also announced enhancements to its streaming services.

Starting September 4, all Disney+ subscribers will have access to ABC News Live and a preschool content playlist.

Four more curated playlists will be introduced for premium subscribers later this year.

"Playlists are the latest example of how we're providing the best value and experience for our subscribers every time they open Disney+," said Alisa Bowen, president of Disney+.

These price hikes come amid a challenging landscape for media companies, grappling with evolving consumer behaviors, rising operational costs and tough competition.

Currently, Netflix remains the runaway leader in the streaming business and the only consistently profitable competitor in the segment.

Disney has gradually increased its streaming prices since Disney+'s launch nearly five years ago, as it aims to make its direct-to-consumer segment profitable – a goal it briefly achieved earlier this year.

Disney will report its fiscal third-quarter earnings on Wednesday, which will provide further insight into its financial performance.