Disney+ and Hulu to Increase Rates This Fall
by Emily Nagle
According to a press release on their website yesterday, Disney will be raising the rates for their various streaming services this fall, including Disney+, Hulu, and ESPN+.
“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,” Kareem Daniel, Chairman of Disney Media & Entertainment Distribution announced. “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.”
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Disney unveiled a chart revealing the new prices for the plans. The monthly, ad-free price for Disney+ will increase to $10.99/month, up from its current price of $7.99/month. A new ad-supported plan will become available for $7.99/month. Hulu’s ad-supported plan will go from $6.99/month to $7.99/month, while its ad-free plan will raise from $12.99/month to $14.99/month.
A cheaper, ad-supported option for Disney+ has been in talks since this past spring, but after Q3 financial reports revealed a loss of over $1 billion across all Disney’s streaming platforms – as well as a slowing in subscriber growth – the company is looking to grow their viewership by letting customers choose the best payment plan for their needs.
As for the ad frequency and length, Disney CEO Bob Chapek described yesterday that it would have a “lower ad load and frequency to ensure a great experience for viewers,” at only four minutes of ads per hour. This cheaper tier will only be able to be purchased on a monthly basis; unlike the premium plan, there is no yearly version of the ad-supported tier.