Disney has set pricing and date for the U.S. launch of the version of Disney+ with ads, while also hiking the monthly price of the Disney+ tier with no ads. It’s also going to raise rates for Hulu — both ad-supported and ad-free versions — and introduce new Disney Bundle options.
Disney+ Basic, which is the name of the plan with ads, will launch Dec. 8 in the U.S. for $7.99/month. That’s the price of the current ad-free version of Disney+, which at that time will bump up to $10.99/month, a 38% increase, and will be known as Disney+ Premium.
The ad-supported version of Disney+ will include all the same content that is available in the ad-free tier, although some titles may not run advertising, according to the company.
Disney+ Basic will launch with about four minutes of ads per hour. It will start with 15- and 30-second spots but will expand to a “full suite of ad products” over time, Disney Advertising Sales president Rita Ferro said at an investment conference this spring. Disney+ with ads will not accept political or alcohol ads. The company expects that the majority of Disney+ customers will opt for the cheaper, ad-supported plan over time.
The strategy appears aimed at mitigating Disney+ subscriber irritation over the price hike on the no-ads plan — and the inevitable cancelations — with the intro of Disney+ Basic at the same price point, albeit with ads stuck into the mix.
Meanwhile, as of Oct. 10, Disney will increase the price of Hulu with ads, from $6.99 to $7.99 per month, while the ad-free tier will go from $12.99 to $14.99 per month. The Disney Bundle in the U.S. (Hulu with ads, Disney+ no ads, ESPN+) will go from $13.99 to $14.99 per month; the premium version of the bundle (Hulu no ads, Disney+ no ads, ESPN+) will remain at $19.99 per month.
As previously announced, ESPN+ rates will increase in August, going from $6.99 to $9.99 per month.
“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, said in a statement.
Disney announced its updated streaming pricing and plans in reporting results for the June 2022 quarter, which topped Wall Street estimates. The company gained 14.4 million Disney+ subs in the period, handily topping the 10 million that analysts forecast, to reach 152.1 million as of July 2.
Here’s the new pricing for Disney’s direct-to-consumer streaming services as of Dec. 8 (except where noted) in the U.S.:
Disney+, Hulu and ESPN+ Standalone Plans
Disney+ Basic (with ads): $7.99 per month; no annual option
Disney + Premium (no ads): $10.99 per month; $109.99 annually
Hulu Basic (with ads)*: $7.99 per month; $79.99 annually
Hulu Premium (no ads)*: $14.99 per month; no annual option
ESPN+**: $9.99 per month; $99.99 annually
* Hulu price increases effective Oct. 10
** ESPN+ price increases effective Aug. 23
Disney Bundle Plans
Basic (with ads): Disney+, Hulu: $9.99 per month
Basic (with ads): Disney+, Hulu, ESPN+: $12.99 per month
Legacy*: Disney+ (no ads), Hulu (with ads), ESPN+ (with ads): $14.99 per month
Premium: Disney+ (no ads), Hulu (no ads), ESPN+ (with ads): $19.99 per month
* Existing subscribers only
Hulu + Live TV
Basic: Includes Hulu SVOD with ads, Disney+ with ads, ESPN+: $69.99 per month
Legacy*: Includes Hulu SVOD with ads, Disney+ no ads, ESPN+: $74.99 per month
Premium: Includes Hulu SVOD without ads, Disney+ no ads, ESPN+: $82.99 per month
* Existing subscribers only
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