Earlier this year in March, it was reported that Disney would eventually add a cheaper ad-support tier to its Disney+ streaming service due to a decrease in subscriber growth. Not only was a new ad-supported tier announced today, but the company also revealed that it is increasing the price of its current ad-free plans.
A lower-cost tier is coming to Disney+ on December 8
Though Disney+ has seen massive growth since it launched in November 2019, its growth has been slowing down. To combat that, Disney has announced an ad-supported tier for $7.99 a month. In addition to this, it is bumping up the ad-free tier to $10.99 a month. The new tier and price changes will go into effect on December 8.
“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.”
Another Disney-owned streaming service Hulu is also set to get a price hike, from October 10 onwards. Hulu’s basic subscription will increase from $6.99 to $7.99, with the ad-free tier going from $12.99 to $14.99. ESPN+ will continue being priced at $9.99 a month with ads.
The Disney+ bundle, which includes Hulu with ads, Disney Plus with no ads, and ESPN Plus, will increase by a dollar as well, going from $13.99 to $14.99 a month. The premium tier of the bundle, which includes ad-free Hulu, will remain the same at $19.99 a month.
Note that the ad-supported Disney+ tier cannot be paid for on an annual basis, that payment plan is only reserved for the ad-free tier. With the price hike in mind, the annual subscription will now cost users a whopping $109.99, up from $79.99.