On Wednesday, The Walt Disney Company CEO Bob Chapek announced that Disney+ would see a price increase later this year in addition to the launch of an ad-supported subscription option on the streaming service.
Ad-free Disney+ will cost $10.99 as of December 8, a nearly 38% price jump. The ad-supported tier will cost $7.99 and also launch on December 8.
These announcements came as part of The Walt Disney Company’s Q3 Earnings Call, which discussed the success of Disney+, the Disney Parks, and other Disney-owned properties. In the company’s Q2 Earnings Call in May, Chapek announced that price increases and ad-supported tiers were coming to Disney+ but didn’t give further details.
According to Chapek, Disney+ still isn’t profitable for The Walt Disney Company. However, he told shareholders that Disney expects Disney+ to be profitable by the end of fiscal 2022. Chapek says more households will be able to afford the service on the ad-supported subscription tier and that the price increases for the ad-free tier will increase the streaming service’s profitability.
“Our creative engines are firing on all cylinders,” Chapek told shareholders. He then celebrated 147 prime-time Emmy nominations, with 92 of those being for direct-to-streaming content on Disney+, Hulu, ESPN+, and Discovery+.
Chapek explained that 47 different shows received nominations, including Abbott Elementary, What We Do in the Shadows, The Dropout, and Only Murders in the Building.
The Walt Disney Company also received 71 news and documentary Emmy nominations for reporting on ABC News, National Geographic, Hulu, and ESPN.
Chapek said The Walt Disney Company hopes to continue a “thoughtful approach to each different distribution” between linear and streaming. Some shows, like Abbott Elementary, can reach different audiences if aired on cable TV and streaming networks. Others, like The Dropout and Marvel shows, Ms. Marvel and She-Hulk: Attorney at Law, do best as streaming exclusives.
“I could not be more proud of the teams at Disney, Pixar, Marvel, and Star Wars,” Chapek said.
Inside the Magic will report on any news about Disney+ prices and profitability.
Do you think Disney Plus is worth the increased cost?