Disney announced the date for the launch of its ad-supported version of Disney+ on Wednesday, along with price hikes for different subscription tiers.
What You Need To Know
- Disney officials announced that an ad-supported version of Disney+ will be launched on Dec. 8
- The new subscription tier will be priced at $7.99 per month
- Disney's other subscription plans will also get new pricing
- On Wednesday, Disney reported that it added 14.4 million subscribers to its Disney+ service in the third quarter
The company’s new Disney+ with ads subscription plan, called Disney+ Basic, will launch on Dec. 8. It will be priced at $7.99 per month, which is what the current ad-free version of Disney+ costs.
With the launch of the ad-supported tier, Disney is raising the price of the ad-free version of Disney+, Disney+ Premium, to $10.99 per month, an increase of 38%.
Disney is also raising the price of its Hulu subscription. The version with ads will be priced at $7.99 per month starting Oct. 10. The ad-free version will jump to $14.99 per month on the same day.
The new pricing will also impact the bundled plans. The bundle with ad-supported versions of both Disney+ and Hulu will cost $9.99 per month. The bundle with ad-supported versions of Disney+, Hulu and ESPN+ will cost $12.99. For current subscribers, the bundle that includes Disney+ (ad-free version), Hulu (with ads) and ESPN+ (with ads), the plan will cost $14.99 per month.
“With our new ad-supported Disney+ offering and an expanded lineup of plans across our entire streaming portfolio, we will be providing greater consumer choice at a variety of price points to cater to diverse needs of our viewers and appeal to an even broader audience,” said Kareem Daniel, chairman of Disney Media & Entertainment Distribution, in a statement. “Disney+, Hulu, and ESPN+ feature unparalleled content and viewing experiences and offer the best value in streaming today, with over 100,000 movie titles, TV episodes, original shows, sports, and live events collectively.”
In an earnings call Wednesday, Disney said it added 14.4 million subscribers to its Disney+ service in the third quarter, bringing the total number of subscribers on the platform to 152 million.
Executives added that they still expect Disney+ to become profitable by 2024.
Disney’s gains with Disney+ comes amid uncertainty in the streaming sphere. Netflix recently reported another subscriber loss, while Warner Bros. Discovery announced a change in its streaming strategy.
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