Disney announced new tiers and ads price hike for its streaming service, Disney+, which will launch on Dec. 8 for $7.99 a month. Kids and preschool shows won’t have advertising.
Disney+ premium no-ad plans will cost $10.99/month and $109.99/year starting Dec. 8.
The company also launched lower-priced, ad-supported basic plans for the Disney Bundle.
$9.99/month for Disney+ and Hulu.
-$12.99/month for Disney+, Hulu, ESPN+
“With our new ad-supported Disney+ offering and an expanded lineup of plans across our streaming portfolio, we will provide greater consumer choice at a variety of price points to cater to the diverse needs of our viewers and appeal to a broader audience,” said Kareem Daniel, Chairman, Disney Media & Entertainment Distribution. Disney+, Hulu, and ESPN+ offer the finest streaming value with over 100,000 movie titles, TV episodes, original shows, sports, and live events.
The disclosure comes ahead of Disney’s quarterly reports and a shift in streaming sentiment. Wall Street and the media are scrutinizing the sector’s costs, growth prospects, and earnings. Advertising allows Disney to offer more alternatives and price points, which is important in times of inflation and recession. Ad revenue helps offset content costs. As streaming wars flare, it’s unclear how many providers will survive, but Disney seems likely.
Disney thinks it has the technical infrastructure, resources, and advertiser relationships to maintain a high-quality streaming experience while offering advertising reach and effectiveness.
Advertisers have flocked to Disney+ since day one. 40% of Disney’s $9 billion in ad commitments went to streaming and digital.
Furthermore, Disney also revealed that Hulu without advertising will cost $14.99 per month starting October 10. Moreover, Hulu with advertising will cost $7.99 per month, up $1.
In the US, the Disney Bundle, which includes Hulu with commercials, Disney+ without ads, and ESPN+, will increase from $13.99 to $14.99 per month. The premium bundle of ad-free Hulu, Disney+, and ESPN+ will cost $19.99 per month.
As previously stated, ESPN+ will cost $9.99 per month and $99.99 annually beginning August 23.
Also on Wednesday, Disney disclosed that Disney+ subscriptions grew to 152.1 million in the third quarter. 14.4 million customers were added in the quarter, exceeding predictions of 10 million.