Disney+ Subscribers, You May Be Looking at a 38% Rate Hike

If you want to continue watching without ads
By Newser Editors and Wire Services
Posted Aug 11, 2022 1:30 AM CDT
Disney+ Subscribers, You May Be Looking at a 38% Rate Hike
In this Nov. 13, 2019, photo, a Disney logo forms part of a menu for the Disney Plus movie and entertainment streaming service on a computer screen in Walpole, Mass.   (AP Photo/Steven Senne, File)

(Newser) – Walt Disney Co. said Wednesday it is raising prices for streaming subscribers in the US who want to watch Disney+ without ads, as more viewers switch to what CEO Bob Chapek described as the “best value in streaming.” The price increases are tied to a new tiered service Disney will launch in December for US subscribers, the AP reports. The basic Disney+ service today costs $7.99 per month. Starting in December, that basic service will run ads, so a subscriber who wants no ads will have to upgrade to a premium service that starts at $10.99 per month, a 37.5% rise over current prices. An annual plan will cost $109.99.

“We expect the ad tier to be popular and we expect some people to want to stay with ad-free,” Chief Financial Officer Christine McCarthy said on a conference call with analysts. Netflix’s most popular streaming plan in the US is now $15.50 per month, and its top-of-the-line plan is $20 per month. That follows several rate hikes to help pay for its original programming, which has become even more important since Disney pulled its programming and classic movies from Netflix after licensing agreements between the companies expired.

Disney said it added 14.4 million subscribers to its Disney+ streaming service in the April-June fiscal quarter. In total, subscribers to all Disney streaming services, which include Hulu and ESPN+, amounted to about 221 million, putting the entertainment giant slightly ahead of Netflix in the streaming wars. Netflix ended June with 220.7 million subscribers after losing nearly 1 million subscribers in the past quarter. Disney said paid subscriptions for Disney+ grew by 31%, much of that internationally, over the same time last year. But revenue growth was not as strong due to operating losses from “higher programming and production, technology and marketing costs.”

(Read more Disney Plus stories.)

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