Walt Disney Co. is launching an ad-supported version of its flagship streaming service Disney+ later this year and plans to raise prices on many of its streaming services in conjunction with the move.
Executives at the media giant announced on Wednesday that they plan to increase the price of ad-free Disney+ to $10.99 per month starting December 8. An annual subscription to the service costs $109.99, up from $79.99 previously.
Ad-free Disney+ is currently $7.99 a month, but that will be the price for the ad-supported Disney+ service, which executives plan to launch on December 8th. Disney doesn’t currently plan to offer an annual subscription for the cheaper Disney+ tier.
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also increases the price of Hulu, which already had tiers with and without ads, and these changes are taking effect earlier than Disney+’s price changes. Disney plans to charge $7.99 per month for the ad-supported Hulu tier and $14.99 per month for the ad-free Premium tier, versus $6.99 per month for the ad-supported service or $12.99 per month for the ad-free offer. These changes will take effect on October 10th.
Company executives previously announced that the monthly fee for ESPN+ would increase from $6.99 to $9.99, with the change taking effect on August 23. The streaming service linked to ESPN only offers an ad-supported version.
Many consumers are choosing to bundle Disney’s streaming services, and the pricing of some of those offerings will also change. Disney will begin offering a package that combines the ad-supported versions of Disney+ and Hulu for $9.99 per month, and a version that adds ESPN+ will cost $12.99 per month.
Existing subscribers are eligible for a package that combines ad-free Disney+, ad-supported Hulu, and ESPN+ for a monthly fee of $14.99. The company will continue to offer a bundle of ad-free Disney+, ad-free Hulu, and ESPN+ for $19.99 per month.
Hulu + Live TV pricing will also change. The company currently charges $69.99 per month for Hulu+ Live TV with Disney+ and ESPN+, a bundle that includes ad-free Disney+ and ad-supported Hulu. Starting in December, this will be the new price in a tier that includes ad-supported Disney+ along with the rest of the mix.
Additionally, Disney plans to charge $82.99 per month for a premium Hulu + Live TV package that combines the ad-free Disney+ and Hulu with ESPN+ and the Live offerings. The current monthly price for such a service is $75.99.
Disney is offering existing subscribers a $74.99 monthly package that combines ad-free Disney+ and ad-supported Hulu along with ESPN+ and live programming.
The price hikes come as Disney has beaten expectations with its latest streaming subscriber numbers, and total streaming subscribers — including Disney+, ESPN+, and Hulu — are higher than rival Netflix Inc. NFLX.