Disney+, Hulu Ad-Free Plan Monthly Prices To Increase
By Movieguide® Contributor
Disney CEO Bob Iger announced that Disney+ and Hulu ad-free subscription prices will increase by 30 percent while ad-supported tier costs will remain the same.
“Streaming is the future of content access, and platforms are trying to create a clearer choice for consumers with their ad-supported and ad-free offerings,” Julie Clark, Senior VP at TransUnion, stated, per The Hollywood Reporter.
“Maintaining access to our content for as broad an audience as possible is top of mind for us,” Iger explained.
Additionally, Disney+ and Hulu have learned from Netflix and will begin to eliminate password sharing.
“We’re actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger expressed, as Movieguide® previously reported. “We will roll out tactics to drive monetization sometime in 2024.”
“The strong momentum of our ad-supported plans in the U.S. demonstrates the importance of providing consumers with choice, flexibility and value,” Joe Early, president of direct-to-consumer for Disney, stated. “We are excited to expand that offering in more markets across the globe, including in Europe and Canada, and to launch a new premium duo bundle of ad-free Disney+ and Hulu this Fall, as we take steps toward making extensive Hulu content available via Disney+ later this year for Bundle subscribers.”
The point of these changes is to make the ad-supported plans more enticing to consumers.
“Economic pressures make it impossible for consumers to subscribe to multiple platforms, and streaming platforms understand the value exchange of advertising with quality content is a logical next step,” Clark added.
The Hollywood Reporter stated, “Even before the pricing changes, the ad tiers were having an impact. Iger said that 40 percent of new Disney+ subs were choosing the ad tier. A Netflix source, meanwhile, says that its ad-supported user base has doubled since the first quarter and now has more than 10 million active users, up from the 5 million it announced at its upfront in May.”
“Consumers don’t just tolerate advertising in video content — in most cases, they actually see benefits from it. It allows them to choose their preferred video tiers at lower cost, and when presented right, advertising results in a more engaging viewing experience,” Mark Loughney, senior consultant to Hub, said.
Movieguide® previously reported on Disney+’s price hike:
During Disney’s Q3 fiscal report, CEO Bob Iger revealed that the company’s media sector is struggling as the company tries to evolve into the age of digital streaming.
Disney’s streaming business lost $512 million during Q3 as the company’s high spending continued. Despite this high loss, the profitability actually saw improvement from last year when it had lost more than $1 billion over Q3.
Disney+’s subscriber count fell to 146.1 million subscribers over the most recent quarter, posting a 7.4% decline – worse than Wall Street had predicted. Much of this loss came from subscribers in India after Disney lost the rights to Indian Premiere League cricket matches.
To help combat the struggles of its streaming services, Disney announced they will increase the price of Disney+, Hulu and ESPN+. Disney+ will rise from $10.99 to $13.99 a month, Hulu will rise to $17.99 from $14.99 a month and ESPN+ will go from $9.99 to $10.99 a month. These price changes will go into effect in October.
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