Disney unveiled a new pricing structure that incorporates an advertising-supported Disney+ as part of an effort to make its streaming business profitable.
Starting Dec. 8 in the U.S., Disney+ with commercials will be $7.99 per month — currently the price of Disney+ without ads. The price of ad-free Disney+ will rise 38% to $10.99 — a $3 per month increase.
The price of Hulu without ads will rise by $2 per month, from $12.99 to $14.99, effective as of Oct. 10. Hulu with ads will go up by $1 per month, rising from $6.99 to $7.99.
Disney announced last month that ESPN+ with ads would go up 43% to $9.99 per month.
The price increases reflect the growing operating loss for Disney’s streaming services. Disney+, Hulu and ESPN+ combined to lose $1.1 billion in the fiscal third quarter, $300 million more than the average analyst estimate, reflecting the higher cost of content on the services.
Average revenue per user for Disney+ decreased by 5% in the quarter in the U.S. and Canada due to more customers taking cheaper multi-product offerings.
Overall, the company’s quarterly results, also announced Wednesday, beat analysts’ expectations on the top and bottom lines. Disney+ subscriptions rose to 152.1 million during the most recent period, higher than Wall Street’s projections of 147 million.
Bundled pricing
Disney also announced new bundle prices incorporating its Disney+ product with commercials.
For existing customers only, a bundle of Disney+ without ads and Hulu and ESPN+ with ads will increase by $1, from $13.99 to $14.99.
The price of a bundle of Disney+, Hulu and ESPN+, all with ads, will be $12.99, or $1 lower than the current Disney bundle price.
Consumers will be able to purchase a Disney+ and Hulu bundle for $9.99 per month with commercials. That’s a discount to paying for Disney+ and Hulu with ads separately.
The price of a no-ad Disney+ and no-ad Hulu, with ESPN+, will be $19.99 per month.
