Disney+ reveals ad tier pricing ahead of December launch date

Disney+’s ad-supported subscription tier will launch on Dec. 8, the parent company announced today. The ad tier will replace the current Disney+ basic rate of $7.99 per month, bumping its ad-free offering to $10.99 monthly with the option to pay $109.99 annually. Kareem Daniel, chairman of Disney Media & Entertainment Distribution, said in a statement that the pricing and other changes across Disney’s digital portfolio “will be providing greater consumer choice at a variety of price points to cater to the diverse needs of our viewers and appeal to an even broader audience.” Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here Hulu will receive a price increase as well, bumping its ad-tier price from $6.99 to match that of Disney+. Last month, the company announced an increase in ESPN+ subscription fees as well, from $6.99 to $9.99 a month. The Hulu and ESPN+ price hikes will go into effect on Aug. 23. The announcement came with new offerings in Disney’s bundling options, including a price for just Hulu and Disney+, previously only available with ESPN+ as well. The duo of entertainment platforms with ads will cost $9.99 per month, or $6 in savings, and $12.99 with the addition of ESPN+—one dollar cheaper than its current trio bundle due to the advent of ads on Disney+. The only price plan that will remain untouched is its premium, ad-free bundle—$19.99 monthly for all three services without interruptions. Disney+ internationally reported 152.1 million subscribers, up 31% from 116 million year over year. In May, Disney announced advertising policies for its Disney+ service, including a ban on political and alcohol ads as well as promotions from competitor entertainment studios. Ad breaks will average about four minutes per hour. Last month, Disney announced it had secured $9 billion in upfront commitments, of which 40% went to its streaming properties. Media measurement blog Tracking TV, social and digital updates Click here

Disney+ reveals ad tier pricing ahead of December launch date

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