In a press release, Disney+ announced changes to its pricing for its various plans and the addition of the Plus Basic package, which will include four minutes of advertising per hour of streaming. It is scheduled to launch on December 8.
The announcement was accompanied by the company's new pricing structure, following its rise to become the leading streaming service in terms of subscribers, with 221,1 million subscribers worldwide compared to Netflix's 220,67 million. This data was released after the first half of the year.
Disney+ will show 4 minutes of ads for every hour of playback.
The rumors that streaming services would add ads to their plans have now become a reality. Disney+ will begin showing ads to subscribers who don't want to pay more for their basic plan starting in December. The fee will be €7,79 per month, so you'll need to cancel three additional months if you want to remove them from your account.
As indicated above, for every 60 minutes of broadcast there will be 4 minutes of ads fragmented into spaces of between 15 and 30 seconds, but everything points to them appearing in a single block in the future, according to Rita Ferro, President of Advertising Sales at Disney.
These commercials will be subject to regulations to maintain the family-friendly nature of the service; therefore, political advertising and advertising for alcoholic beverages will not be permitted. Likewise, children's programming and school programming will be ad-free.
Overall, the company's revenue grew by 26% year-on-year.
According to executive estimates, over time most customers will stick with the budget plan, which will help increase the number of advertisers.
Kareem Daniel, president of Disney Media & Entertainment Distribution, stated that they will provide users with a greater variety of options, which will allow them to meet the needs of viewers while also attracting a wider audience.
From that point on, everyone will be able to choose what suits them best according to their budget. For now, it will be implemented in the United States. There is no release date yet for the rest of the world.
These are the new Disney+ prices and plans
The price adjustment comes after Disney's financial update, in which they emerged very positively. They gained 14,4 million new subscribers in the first half of 2022, exceeding analysts' initial projections. The statement indicates that ad-free or Premium plans will see an increase in price compared to those with advertisers.
The Disney+ Basic plan with ads will cost €7,79 per month, while the ad-free version will cost €10,71, a 38% increase. The programming will be the same; only the commercials will be included, which cover the additional €3 cost of the plan.
Disney Plus + Hulu will cost 9,74 euros.
Disney Plus + Hulu + ESPN Plus will cost 12,66 euros.
Hulu + Live TV + Disney Plus + ESPN Plus (with ads included) will cost €68.22 per month.
Executives say that revenue per subscriber is currently very low. Average earnings per affiliate are €4,24, depending on the plans offered in each country. The difference can sometimes be significant. In India, they earn €1,17, while in the United States, they earn €6.
But the increase goes hand in hand with other initiatives. Bob Chapek, CEO of Disney, indicates that the company will keep its foot on the gas to continue its growth , so they will deepen their plan to transform entertainment by creating new and compelling narratives, which will be reflected in films, series, and documentaries.
This August, Disney plans to surprise its fans with new releases and thus maintain its fierce competition with Netflix and HBO Max, with a total of 11 series and 9 films, among which She-Hulk: Lawyer She-Hulk stands out, starring the cousin of Bruce Banner, the Hulk of The Avengers.
It's worth noting that Disney+ originally launched in the United States on November 12, 2019 , and later expanded its services to the Netherlands and Spain. It entered Latin America in 2020 to compete with other giants already established in the market.
Its platform comprises Hulu with 46,2 million subscribers and ESPN with 22,8 million, totaling 221,1 million subscribers worldwide. The catalog brings together content from Disney, Pixar, Marvel, Star Wars, National Geographic, and Star in one place, with compatibility for various devices.
