Not-so-enchanting news from Disney+ as they adjust their pricing strategy in light of mounting operating losses. With inflation impacting everyone from Mickey Mouse to Moana, viewers may soon feel the pinch in their wallets or have to adjust their viewing habits. Beginning December 8 in the U.S., the standard monthly subscription fee for Disney+ will jump by 38%, going from $7.99 to $10.99. However, there is a silver lining: the service will introduce a commercial-supported subscription tier at the original price of $7.99. Disney+ CEO Mark Johnson announced this ad-supported option during the company’s recent earnings call, stating, “Providing Disney+ access at various price points is beneficial for both consumers and advertisers.”
Disney’s advertising head, Lisa Green, noted, “Advertisers are eager to join Disney+, not only due to the growing need for streaming inventory but also because our platform showcases premium content featuring beloved franchises like Disney, Pixar, Star Wars, Marvel, and National Geographic.” However, it remains unclear how many ads families will endure before diving into a galaxy far, far away.
The price hikes don’t stop at Disney+; they will also impact other Disney streaming platforms. Starting October 10, Hulu without ads will increase by $2, from $12.99 to $14.99, while Hulu with ads will rise by $1, from $6.99 to $7.99. Additionally, ESPN+ will see its price rise from $6.99 to $9.99 at the end of August.
Looking for a way to navigate these changes? Consider the Disney ad-supported bundle, which includes Disney+, Hulu, and ESPN+ for just $13.99. If you are already subscribed to two out of the three services, this bundle could save you money—just like those good old days of cable bundles. The price for the ad-free bundle will remain unchanged at $19.99.
Despite rising operational costs, Disney+ continues to thrive in subscriber growth, recently reaching 152.1 million subscribers, exceeding expectations. The company has indicated that it plans to operate at a loss on Disney+ until 2024, at which point they expect to achieve profitability as their subscriber base grows internationally. Ultimately, the business side may not matter much as long as kids can binge-watch their favorite shows, like Gravity Falls, while parents get some peace during Zoom meetings.
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In summary, Disney+ is adjusting its pricing structure to introduce an ad-supported tier while increasing subscription costs for its regular service. Other platforms like Hulu and ESPN+ will also see price hikes. Despite these changes, Disney+ continues to grow its subscriber base, and families can still save through bundled services.