Disney+ isn’t done with price hikes yet. As part of its third-quarter earnings report, Disney announced that it will raise the price of the ad-free service in the US to $11 a month on December 8, up $3 from today. If you want to keep the same price, you need to subscribe to the ad-supported tier, which starts on the same day. In other words, the ad-supported plan won’t actually be any cheaper – you’ll just have to pay more to keep the uninterrupted experience you already have.
The media giant also announced it would increase the price of ad-free Hulu by $2 to $15 per month on October 10. Plus, if you can accept ads, you’ll pay $8 a month instead of $7 today. A $10 monthly issue feeds ads to both Disney+ and Hulu. A bundle of ad-free Disney+, ad-supported ESPN+, and its Hulu counterpart will go up a dollar to $15 a month, but you’ll drop to $13 a month if you’re willing to tolerate ads for all three. You have to pay $20 a month to get the trio with no sales calls.
Disney wasn’t shy about the reason for the price increases. Although the company added 14.4 million Disney+ subscribers during the quarter (a total of 221 million across all services), operating losses for its streaming-focused division widened to nearly $1.1 billion from $293 million a year earlier -Dollar. Production costs for Disney+ and Hulu are skyrocketing, and Disney wants to recoup that money.
The performance is in sharp contrast to a key competitor. As Netflix hammers out its own ad-driven plan, it’s currently losing customers — relying on advertising to generate growth where Disney simply hopes for profit. As difficult as the finances are, Disney+ is in a stronger position.
All products recommended by Engadget are selected by our editorial team, independently of our parent company. Some of our stories contain affiliate links. If you buy something through one of these links, we may receive an affiliate commission.
https://www.engadget.com/disney-plus-price-increase-ad-based-service-204903273.html?src=rss Disney+ ad-free streaming price increases to $11 per month in December