DISNEY is raising the price of its Disney+ streaming service in the US as it introduced a new subscription tier that includes ads during shows.
The price increases are tied to a new tiered service Disney will roll out to US subscribers in December.
Disney+’s basic service is now $7.99 a month.
Beginning in December, this basic service will start showing ads, so a subscriber who doesn’t want ads will have to upgrade to a premium service, which starts at $10.99 per month, a 37 percent increase over current prices.
An annual plan costs $109.99.
That means viewers who want to stick with their current pricing plan need to watch ads during their favorite shows and movies.
And it’s a change that’s likely to make its way to the UK once the ad-supported tier rolls out here, potentially as early as next year.
“We anticipate that the ad tier will be popular, and we anticipate that some people will want to stay ad-free,” CFO Christine McCarthy said on a conference call with analysts.
The price jump comes at a terrible time for consumers who are already being squeezed by the rising cost of living.
Netflix’s most popular streaming plan in the US is now $15.50 per month, and the top-of-the-line plan is $20 per month.
This follows several rate hikes to pay for original programming, which has become even more important since Disney pulled its programming and classic films from Netflix after the licensing deals between the companies expired.
Disney announced that it added 14.4 million subscribers to Disney+ in the April-June fiscal quarter.
Collectively, subscribers across all Disney streaming services, which include Hulu and ESPN+, totaled about 221 million, putting the entertainment giant just ahead of Netflix in the streaming wars.
Netflix ended June with 220.7 million subscribers after losing nearly 1 million subscribers last quarter.
Disney said paid subscriptions to Disney+ increased 31 percent compared to the same period last year, much of it internationally.
Revenue growth wasn’t as strong, however, due to operating losses stemming from higher program and production, technology and marketing costs.
Disney’s growing streaming sales, combined with a recovering theme park business following shutdowns during the pandemic, prompted the Burbank, California-based entertainment giant to beat Wall Street expectations with quarterly earnings on Wednesday.
Disney reported revenue of $21.5 billion for the three months ended July 2, up 26 percent from the same period last year.
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https://www.thesun.ie/tech/9235287/disney-price-rise-simple-trick-avoids-it/ Here’s how to avoid a HUGE price hike on Disney+ with a simple trick