Disney+ really has something for everyone – whether you like to follow along Andorlook again Frozen or you are eagerly waiting for Black Panther: Wakanda Forever to hit the streaming service. Earlier this month, as CNN reports, Disney’s ad-free tier changed the price to $10.99 per month, which is an increase of $3.
For customers who would rather save more money each month, Disney+ now offers a new “Basic” tier with ads that cost $7.99. Many customers have taken to social media to express their disappointment and misgivings about this news.
Here’s what we know about the price increase so far:
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Disney+ will cost more per month, unless you choose the “basic” ad option
The Disney+ ‘Basic’ package will be cheaper each month, but will include ads, as the ad-free option will now cost $10.99. As noted by CNN, the Disney+ service now has 3 different packages with its sister platforms (including Hulu and ESPN+) as well as a new one that combines Hulu’s ad-supported tier and the new Disney+ Basic package for $9.99 per month.
Customers may agree that this might be a better deal, as the “Hulu with Ads” option only costs $7.99 per month. Another tier that combines all 3 services – again with ads – costs $12.99 per month.
Back in March of this year, Disney announced that their streaming service would be introducing an ad-supported tier. The company said it saw this as a “building block” in Disney’s goal of reaching 230 million to 260 million long-term subscribers by fiscal year 2024. (Disney+ currently has 164.2 million global subscribers, as of November 2022).
Disney’s streaming business, as CNN points out, “lost $1.5 billion in its [recent] quarter,” compared to a “loss of $630 million in last year’s fourth quarter.” In a November 2022 letter to investors, Bob Chapek, Disney’s CEO, said, “The rapid growth of Disney+ in just three years since its launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally.”
He continued: “We expect ours [direct to consumer] the operating deficit must be reduced going forward.” Chapek also added that the streaming unit will still “achieve profitability in fiscal year 2024.”
Naturally, any Disney+ fan who uses — and enjoys — the ad-free service won’t be thrilled to learn about the price increase, or that the cheaper option includes ads. As one user tweeted on Christmas Eve: “After watching Mickeys once or twice this Christmas, I think I’m going to have to put this Disney plus subscription on hold. The price increase is a little too much for me.”
Someone else chimed in and wrote, “just got the dreaded ‘disney plus subscription price increase’ email” to which another fan commented: “Disney plus is going to cost me double this December and I’m not getting anything for the price increase.. .You’re going to have a hard time convincing me that Disney needs more money. Yes. Not worth it.”