Disney today raised the curtain on its highly anticipated ad-supported streaming plans, announcing new tiers and pricing led by Disney+ with advertising, a subscription offer that will be available in the U.S. on Dec. 8 for $7.99 a month. There will be no ads in kids and preschool programming.
The Disney+ premium no-ads plans, currently $7.99 a month or $79.99/year, will change to $10.99 a month or $109.99 a year on Dec 8.
The company also announced new, lower-priced, basic plans with ads for the Disney Bundle, including:
-Disney+, Hulu for $9.99 a month.
-Disney+, Hulu, ESPN+ for $12.99 a month
-Also, Hulu + Live TV – which has included Disney+, Hulu and ESPN+ as part of a subscription since December – will introduce a new basic (with ads) plan for $69.99 a month.
“With our new ad-supported Disney+ offering and an expanded lineup of plans across our entire streaming portfolio, we will be providing greater consumer choice at a variety of price points to cater to the diverse needs of our viewers and appeal to an even broader audience,” said Kareem Daniel, Chairman, Disney Media & Entertainment Distribution. “Disney+, Hulu, and ESPN+ feature unparalleled content and viewing experiences and offer the best value in streaming today, with over 100,000 movie titles, TV episodes, original shows, sports and live events collectively.”
The news comes on the cusp of Disney’s latest quarterly earnings today and amid a sentiment shift on streaming. Wall Street and big media are scrutinizing the sector’s costs, growth prospects and potential profits much more closely. Advertising lets Disney offer more options and price points, which is becoming especially relevant in complicated economic times like now with inflation soaring and recession looming. And ad revenue can help defray the high cost of content spend. As streaming wars rage it’s not clear how many services will ultimately be left standing, although Disney is considered a pretty sure bet.
Disney believes it’s well positioned to maintain a high-quality streaming experience while delivering advertising reach and effectiveness – meaning it has the technical infrastructure and capabilities and relationships with advertisers for this to go smoothly.
Advertisers have in fact been clamoring to get in on Disney+ from day one. Disney reported its strongest Upfront ever, with 40% of $9 billion in advertising commitments going to streaming and digital.
So what stays the same:
As per above, the Disney+ premium no-ads plans stays at $10.99 a month, or $109.99 a year.
There is no change to the Premium plan for the Disney Bundle at $19.99 a month.
Legacy, or existing, subscribers are still paying $14.99 for a bundle of Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads).
Here’s what all Disney’s plans look like now:
-Disney+ Basic (With Ads) $7.99 a month – NEW, starting Dec. 8
-Premium (No Ads) $10.99 a month, $109.99 a year – SAME
-Hulu Basic (With Ads) $7.99 a month/ Premium (No Ads) $14.99 a month – NOT NEW but reflects previously announced prices increases starting Oct. 10
-ESPN+ With Ads $9.99 a month/$99.99 a year – PREVIOUSLY ANNOUNCED, rolling out August 23
-UFC PPV $74.99 (per event) – no change – SAME
-UFC PPV + Annual $124.98 – no change – SAME
Disney Bundle Plans:
-Basic (With Ads): Disney+, Hulu $9.99 – NEW, Dec. 8
-Basic (With Ads): Disney+, Hulu, ESPN+ $12.99 – NEW, Dec. 8
-Legacy: Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads) $14.99 – NOT NEW but reflects previously announced price increase, Dec. 8
-Premium: Disney+ (No Ads), Hulu (No Ads), ESPN+ (With Ads) $19.99 a month – SAME
Hulu + Live TV Plans:
Hulu + Live TV
-Basic (With Ads): Disney+, Hulu, ESPN+ $69.99 NEW
-Legacy: Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads) $74.99 – NOT NEW but reflects new price previously announced, Dec 8
-Premium: Disney+ (No Ads), Hulu (No Ads), ESPN+ (With Ads) $82.99 – NOT NEW but reflects new price previously announced, Dec. 8