Disney has decided to raise the cost of the Disney Plus subscription and is also developing an ad-supported tier.
Disney Plus appears to have similar aspirations to Netflix after the latter said it would introduce an ad-supported Tier to its site. Disney Plus recently stated that the cost of its monthly subscription would increase from $7.99 to $10.99. The business said that the higher prices would take effect in the United States on December 8 of this year.
The Disney Plus subscription service will also be ad-supported, similar to Hulu. Subscriptions to Disney Plus Basic cost $7.99 per month. However, there won’t be an annual plan for this new ad-supported tier.
Speaking about Hulu, the ad-supported plan has been hiked to $7.99 per month, making it comparable to Disney Plus’ ad-supported subscription. This means that users will have to pay more money. Users of Hulu who now subscribe to the ad-free tier will now pay $14.99 per month instead of $12.99.
Hulu stated that the higher rates would take effect on October 10. The cost of ESPN Plus, which is a component of the same bundle, increased as well, from USD 6.99 to USD 9.99 each month.
Why is this taking place?
It appears that the higher prices are a direct result of the operating deficit in the third quarter of 2022, which was $1.1 billion. The number of subscribers to Disney Plus increased by over 14.4 million in Q3 2022, increasing the total to 152.1 million, despite losses. It’s interesting to note that for the first time in April of this year, Netflix’s user base declined.
A bundle with access to ad-supported ESPN Plus and Hulu as well as ad-free Disney Plus and Hulu will also be available from Disney for $19.99 per month. It is unknown if the price hike will also have an impact on Disney Plus Hotstar plans in India. There has been no news from Disney Plus Hotstar regarding a price increase as of yet.
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