The Walt Disney Co. is raising prices for its Disney Plus bundles, but there is still a cost-effective option available for members who are willing to tolerate ads. Disney recently announced that the price of its ad-free bundles will increase, but the basic plan with ads will remain unchanged at $7.99 per month. This option incorporates advertisements into the viewer’s experience. Starting from October 12th, Disney Plus without ads will cost $13.99 per month or $139.99 per year. Similar to Peacock and Paramount Plus, other streaming services, these platforms offer discounted rates if you choose to watch ads. However, keep in mind that you will have to endure a few commercials that typically last around a minute or a minute and a half. Unfortunately, there is no option to fast-forward through these ad-supported streaming services.
The ad-supported streaming options for Disney Plus were introduced in December 2022. When discussing this addition, Michael Paull, the President of Direct to Consumer at Disney, emphasized that it offers consumers greater flexibility in experiencing the wide range of compelling content produced by The Walt Disney Company. Subscribers to the Disney Plus Basic plan and other ad-supported bundles will have access to the same extensive library of movies, series, documentaries, and more under the Disney umbrella. This includes beloved Disney classics, current films, as well as content from the Marvel and Star Wars universes. Notable examples are the critically acclaimed series like Abbot Elementary, Star Wars series The Mandalorian (featuring the lovable character Baby Yoda/Grogu), Andor, and original productions such as The Old Man and Only Murders in the Building.
Disney’s decision to introduce ad-supported streaming options comes at a time when the company is facing a decline in its stock value and disappointing earnings, causing a major shakeup within its leadership. Some analysts have suggested that this move could be the solution to these challenges. Third Bridge analyst Jamie Lumley stated in December that “Disney Plus’ ad-supported tier is going to be a game changer for its subscriber and revenue growth.” Lumley also highlighted Disney’s advantage over Netflix due to its existing ad technology and infrastructure, which it has through Hulu and ABC network channels.
In addition to Disney, other streaming services have also been making significant moves to expand their customer bases and generate revenue. As reported last December, HBO Max has returned to Amazon Prime Video’s third-party streaming channels, and Warner Bros. Discovery slashed subscription prices for HBO Max last summer.