Disney+ Will Cost More Per Month, Unless You Choose Its 'Basic' Ad Option
The Disney+ 'Basic' package will be cheaper every month, but will include ads, as the ad-free option will now cost $10.99. As noted by CNN, the Disney+ service now has 3 different bundles with its sister platforms (including Hulu and ESPN+) as well as a new one that combines Hulu’s ad-supported tier and the new Disney+ Basic package for $9.99 per month.
This, customers might agree, could be a better deal as the 'Hulu with Ads' option solely costs $7.99 per month. Another tier that combines all 3 services— again with ads— costs $12.99 per month.
Back in March of this year, Disney announced that its streaming service would be introducing an ad-supported tier. The company said it saw this as a "building block" in the Disney goal of reaching 230 million to 260 million long-term subscribers by the 2024 fiscal year. (Disney+ currently has 164.2 million global subscribers, as of November 2022).
Disney’s streaming business, as CNN points out, "lost $1.5 billion in its [recent] quarter," compared to a "loss of $630 million in last year’s fourth quarter."In a November 2022 letter to investors, Bob Chapek, Disney’s CEO, said, "The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally."
He continued, "We expect our [direct to consumer] operating losses to narrow going forward.” Chapek also added that the streaming unit will still "achieve profitability in fiscal 2024."
Customer Reactions
Naturally, any Disney+ fan who uses—and enjoys— the service without ads would not be thrilled to learn about the price increase, or that the cheaper option includes ads. As one user tweeted on Christmas Eve, "After I rewatch Mickeys once and twice upon a Christmas I think I’m gonna have to pause this Disney plus subscription. Price increase is a little too much for me."
Someone else chimed in, writing, "just got the dreaded ‘disney plus subscription price increase’ email" as another fan commented, "Disney plus is going to cost me twice as much in December and I’m not getting anything for the price increase. You’re going to have a hard time convincing me that Disney needs more money. Yea. Not worth it."