Disney+ is getting more expensive… unless you want ads


Disney+’s new ad-supported subscription level will launch in the US on December 8 and will cost $7.99 per month, the company announced Wednesday. If this price range sounds familiar, it should. This is what consumers are currently paying for Disney+ ad-free.

Disney+ is getting more expensive… unless you want ads


Disney+’s ad-free premium tier increases by $3 per month to $10.99, the biggest price increase since its debut in November 2019. In March 2021, the price increased by $1.
The Disney+ price increase was due to the service having a strong quarter. The service topped Wall Street’s expectations in the third quarter, when he recorded 14.4 million subscribers. Currently, the service has 152.1 million subscribers.

The result boosted the stock by as much as 6.5% in after-hours trading.
As for the company’s total revenue, Disney (DIS) said he earned $21
Second quarter revenues of $5.0 billion, up 26% year-over-year, and net income of $1.4 billion, up 53% year-over-year.
Disney says he has 221 million subscribers across multiple streaming services. Netflix has 220.6 million.

Disney has also revised its long-term guidance, targeting 230 million to 260 million subscribers by the end of fiscal 2024. On Wednesday, the company announced new forecasts for its core Disney+ product to reach 135 million to 165 million subscribers and its Disney+ Hotstar service in India to exceed 80 million subscribers.
“Thanks to the outstanding performance of our world-class creative and business teams in our domestic theme parks, significant growth in viewership for live sports and significant growth in subscribers to our streaming services, We had a great quarter,” according to the company’s letter to investors on Wednesday.

Why Disney+ is going up in price

Disney+ isn’t the only Disney streaming service to see price increases.
Hulu, which is majority-owned by Disney, has also seen price increases, from $1 to $7.99 for the ad-supported tier and $2 to $14.99 for ad-free Hulu. You can see premium.

One plan that will not be increased is the Premium Disney Bundle. This ties the company’s Disney+ and Hulu ad-free streaming services with ESPN+. The cost remains $19.99

. The move appears to be Disney’s way of getting consumers to sign up for a full suite of services instead of just one. From a pricing standpoint, it’s hard to say no to a package of three services that costs just $9 more per month than Disney’s largest service.

Disney (DIS) is also introducing two new bundle plans. Another is all three of his services with ads for $12.99.
Streaming service links appear to be a new focus for media companies.
Take Warner Bros. Discovery for example. CNN’s parent company announced last week that it will merge his two streaming services, HBO Max and Discovery+, next summer.

If the first phase of the streaming revolution that began around 2017 was the “Streaming Wars,” the next phase could be considered the “Rumble of the Bundles.”
So why are streaming paperbacks hitting again? Because building a successful streaming service is very expensive.
services like Disney+ spend millions, if not billions, of dollars to create new content that appeals to new and old subscribers and the expensive infrastructure to tie it all together. increase.
Exhibit A: Disney’s loss for his D2C division in the third quarter was his $1.06 billion, about four times what it was a year ago.
Streaming growth is also showing signs of maturity. H. Slow growth. Netflix (NFLX), the king of streaming, has lost subscribers for the second straight quarter this year.
It’s getting harder to get new subscribers across the industry, and when subscriber numbers are declining, revenue has to come from somewhere. Raising prices is an easy way to do this.

And Disney can get away with that kind of price hike given the breadth of its library. There are several Hulu also offers vibrant content, including 20th Century Studios feature films and FX shows.
Kareem Daniel, chairman of Disney Media & Entertainment Distribution, said in a statement Wednesday that the new ad-supported service, like the company’s new line of streaming plans, “will give consumers more choice at different price points. Meet the needs of the most diverse audiences and appeal to a wider audience.

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