Disney has unveiled a new pricing structure that includes an ad-supported Disney+ to make its streaming business profitable.
As of December 8, Disney+ with ads will cost $7.99 per month in the US — currently the price of Disney+ without ads. The price of ad-free Disney+ will increase 38% to $10.99 — an increase of $3 per month.
Ad-free Hulu’s price will increase by $2 per month starting October 10, from $12.99 to $14.99. Hulu with Ads will increase by $1 per month, from $6.99 to $7.99.
Disney announced last month that ESPN+ would increase 43% to $9.99 a month with ads.
The price hikes reflect the growing operating loss for Disney’s streaming services. Disney+, Hulu, and ESPN+ lost a combined $1.1 billion in the fiscal third quarter, $300 million more than the average analyst estimate, reflecting the services’ higher content costs.
Average revenue per user for Disney+ fell 5% in the quarter in the U.S. and Canada as more customers took advantage of cheaper, multi-product deals.
Overall, the company’s quarterly results, also released on Wednesday, beat analysts’ expectations for revenue and earnings. Disney+ subscriptions rose to 152.1 million recently, beating Wall Street’s forecast of 147 million.
Disney also announced new bundle prices that include its Disney+ product with commercials.
For existing customers only, a bundle of Disney+ without ads and Hulu and ESPN+ with ads will increase by $1 from $13.99 to $14.99.
The price for a bundle of Disney+, Hulu, and ESPN+, all with ads, is $12.99, or $1 less than the current Disney bundle price.
Consumers can buy a bundle of Disney+ and Hulu for $9.99 per month with ads. That’s a discount on paying for Disney+ and Hulu separately with ads.
The price for ad-free Disney+ and ad-free Hulu with ESPN+ is $19.99 per month.
https://www.cnbc.com/2022/08/10/disney-raises-price-on-ad-free-disney-38percent-as-part-of-new-pricing-structure.html Disney is increasing prices for Disney+, Hulu and ESPN+