Ad-supported Disney+ subscription option rolls out in US
The Disney+ Basic plan costs $7.99 per month
Blanke Schein Wealth Management CIO Robert Schein discusses what Disney's management change could mean for the company's streaming and theme parks businesses, on 'The Claman Countdown.'
The Walt Disney Company on Thursday announced that the new ad-supported subscription option in the U.S. for its Disney+ streaming platform has now rolled out.
Under the new ad-supported Disney+ Basic option, users will have access to the streaming platform’s entire library of titles and the ability to simultaneously watch content on a maximum of four devices, among other features, the company said. The standalone plan with ads costs $7.99 per month.
At the same time, the company detailed a few ad-supported streaming packages, including the Disney Bundle Duo Basic, Disney Bundle Trio Basic and Hulu (With Ads) + Live TV.
HULU RAISES SUBSCRIPTION PRICES
The Duo Basic subscription offers Disney+ and Hulu, both with ads, for a monthly price of $9.99, while the Trio Basic plan provides both of those and ESPN+ with ads at $12.99 per month. For $69.99 on a monthly basis, the third package includes access to ad-supported Hulu with live TV and Disney+ and ESPN+ with ads.
Disney+ startscreen on mobile phone. (iStock / iStock)
Over 100 advertisers in retail, finance, tech, restaurants and other sectors are participating in the new ad-supported offering, according to Disney.
The company's price for the ad-free version of Disney+ has gone up to $10.99 a month.
The Walt Disney Company logo seen displayed on a smartphone. (Thiago Prudencio/SOPA Images/LightRocket via Getty Images / Getty Images)
The roll-out of Disney+’s ad-supported tier comes roughly nine months after the company officially announced plans to do so amid efforts to grow the platform’s subscriber base.
DISNEY+ SUBSCRIBER BASE GROWS BY 12.1 MILLION IN Q4
Disney reported in November that the subscriber count for Disney+ had increased by 12.1 million in the fourth quarter, bringing the total for the streaming service to 164.2 million. Across all of its direct-to-consumer services, it now has over 235 million subscribers.
Attendees are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California, on September 9, 2022. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)
The entertainment behemoth posted $1.47 billion in fourth-quarter operating losses for the direct-to-consumer services segment, roughly 134% wider than the $630 million loss it reported in the same period last year. Then-CEO Bob Chapek said he expected that figure to "narrow going forward" and for Disney+ to become profitable in fiscal 2024.
NETFLIX SUBSCRIBER GROWTH EXPANDS 2.4 MILLION AFTER TWO QUARTERS OF DECLINE
Competitor Netflix, which said its subscriber count was about 223 million by the end of its third quarter, put out an ad-supported subscription plan of its own with a $6.99-per-month price tag for U.S. users in early November.