Disney announced on their recent earnings call that the price of their Disney+ Premium ad-free tier will see future increases, and that that European subscribers will have the option to subscribe to the Disney+ Basic level later this year.
A Future Focus On Ad-Supported Tiers
According to the current CEO of The Walt Disney Company, Bob Iger, they have “price elasticity for the service”, meaning they plan to be nimble regarding their pricing structure. By raising the price on their ad-free tier, they are trying to create more of a pricing divide between the ad-free and ad-supported tiers. Their main goal is to attract more people to subscribe to the Disney+ Basic Tier, which will simultaneously make their streaming service cheaper to the customer, but potentially could net them more revenue per user.
The truth is we have only just begun to scratch the surface of what we can do with advertising on Disney+. And I’m incredibly bullish on our longer term advertising positioning. Meanwhile, the pricing changes we’ve already implemented have proven successful and we plan to set a higher price for our ad-free tier later this year to better reflect the value of our content offerings.Bob Iger, CEO of The Walt Disney Company
The reason for the company’s plan is the potential for significant growth in digital advertising earnings within the Disney+ Basic subscription tier of their ad service. Iger suggests that the company should focus on generating revenue through its ad-supported service during this time.
What Will The New Price For Disney+ Premium Ad-Free Tier Be?
Specific details regarding the price increase for the Disney+ Premium ad-free tier have not been shared yet. Now may be a good time to purchase an annual Disney+ subscription. Doing so would allow you to lock in your Disney+ price for the next 12 months before the price has been officially increased.
Current Disney Streaming Subscription Options
We’ve added a handful of table below to give you an overview of the current pricing structure that Disney is offering for their streaming services.
Disney+, Hulu, and ESPN+ Standalone Plans
|Disney+||Basic (With Ads)||$7.99||N/A|
|Disney+||Premium (No Ads)||$10.99||$109.99|
|Hulu||Basic (With Ads)*||$7.99||$79.99|
|Hulu||Premium (No Ads)*||$14.99||N/A|
|ESPN+||UFC PPV**||$74.99 (Per Event)||N/A|
|ESPN+||UFC PPV + Annual**||N/A||$124.98|
*Effective as of October 10, 2022
** Effective as of August 23, 2022 (Previously Announced)
Disney Bundle Plans
|Basic (With Ads)||Disney+, Hulu||$9.99|
|Basic (With Ads)||Disney+, Hulu, ESPN+||$12.99|
|Legacy***||Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads)||$14.99|
|Premium||Disney+ (No Ads), Hulu (No Ads), ESPN+ (With Ads)||$19.99|
*** Existing subscribers only
Hulu + Live TV Plans
|Basic (With Ads)||Disney+, Hulu, ESPN+||$69.99|
|Legacy***||Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads)||$74.99|
|Premium||Disney+ (No Ads), Hulu (No Ads), ESPN+ (With Ads)||$82.99|
***Existing subscribers only
What Are Your Thoughts?
What do you think of Disney’s ad-supported tier? Do you mind seeing advertisements played throughout your time streaming Disney’s portfolio of content? Let us know in the comments!
As always, stay tuned to the DVC Shop blog for all the latest developments for Disney theme parks and all the information you could ever need about the Disney Vacation Club resorts.