Disney has announced plans to increase the price of a Disney Plus subscription in the United States later this year.
The move will coincide with the launch of the streamer's new ad-supported subscription tier on December 8, which is expected to cost $7.99 per month (that's the same as an existing Disney Plus subscription). The price of the ad-free version of the service will increase to €10,99 per month, or €109,99 per year, instead of €79,99, company leaders revealed in a recent earnings call (opens). in a new tab).
Customers in the UK and Australia seem immune to the increase for now, although we suspect Disney's planned ad-supported tier rollout internationally in 2023 will see price increases matched. in todos los dominios. Our communications with Disney to obtain more details and actualizaremos this article with such respuesta.
It should be noted that US subscribers who prepaid for an annual Disney Plus subscription will not be affected by the price increase until their next payment date. That is, as long as it is after December 8.
Hulu and ESPN Plus are also getting more expensive for US customers. On October 10, the former's standard tier will drop from €12,99 per month to €14,99, while its ad-supported version will drop from €6,99 per month to €7,99. ESPN Plus will drop from $6.99 to $9.99 on August 23, while the Disney Bundle (which includes ad-free subscriptions to Disney Plus, ad-free Hulu, and ad-free ESPN Plus) will also drop to $19.99 per month (instead of $13.99). ).
Despite adding more than 14 million subscribers to Disney Plus in the third quarter of 2022, bringing the streamer's global total to 152 million, rising production and programming costs, according to company executives, have resulted in higher operating losses than in previous quarters.
"We remain confident that Disney Plus will achieve profitability in fiscal 2024," Disney Chief Financial Officer Christine McCarthy said on the recent earnings call, and the aforementioned price increases will go some way to helping the streaming giant. the means to achieve this goal.
Disney Plus with ads: what's the problem?
So Disney's ad-supported level will finally launch in the US on December 8th for €7.99 per month (it won't be available as an annual plan), but what is it?
According to Disney, the new tier will give consumers greater financial choice and will have "reduced load and ad frequency to ensure a great experience for viewers."
That claim was backed up earlier this year, when reports emerged suggesting that Disney's ad-supported tier would limit ads to four minutes per hour of content and completely restrict ads when young children browse through user profiles. the platform suitable for children. Disney confirmed the latter during its recent earnings call.
For comparison, Disney's other streaming service, Hulu, airs up to 12 minutes of commercials per hour of content, while NBC's Peacock airs five. Cable television typically bombards viewers with around 20 minutes of commercials per hour of content.
A cap of four minutes per hour would bring Disney's advertising level in line with that of HBO Max, which launched its own cheaper subscription plan in June 2021.
Despite years of public resistance to introducing advertising into its business model, Netflix recently admitted that it also intends to launch an ad-supported subscription tier in "early 2023." However, some movies and TV shows won't. make the cut, at least to begin with.
It's still unclear what content metrics Disney plans to impose on its ad-supported tier, but the confirmation of some sizable price increases across its streaming portfolio is sure to ruffle the feathers of more frugal subscribers, especially in a climate where the cost of living it is biting hard in many places.
Netflix has already seen a decline in its subscriber base due to rising food and fuel prices, so one has to wonder if Disney is ready for its streamer to suffer a potentially similar fate.
For more content related to Disney Plus, read What to Expect on Disney Plus Day, which takes place on September 8. Otherwise, find out how the latest Predator movie just set a new world record on Disney Plus and Hulu.
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