Disney has unveiled a new pricing structure that incorporates ad-supported Disney+ as part of an effort to make its streaming business profitable.
Starting December 8 in the US, Disney+ with ads will cost $7.99 per month – currently the price of Disney+ without ads. The price of ad-free Disney+ will increase by 38% to $10.99, an increase of $3 per month.
Hulu’s ad-free price will increase by $2 per month, from $12.99 to $14.99, starting October 10. Hulu with ads will increase by $1 per month from $6.99 to $7.99.
Disney announced last month that ESPN+ with ads would increase 43% to $9.99 per month.
The price increases reflect the growing operating loss of Disney’s streaming services. Disney+, Hulu and ESPN+ combined to lose $1.1 billion in the fiscal third quarter, $300 million more than analysts’ average estimate, reflecting the higher cost of content on the services.
Disney+ average revenue per user decreased 5% in the quarter in the US and Canada due to more customers taking up cheaper multi-product offers.
Overall, the company’s quarterly results, also announced on Wednesday, beat analysts’ expectations for the top and bottom results. Disney+ subscriptions grew to 152.1 million in the most recent period, higher than Wall Street projections of 147 million.
Disney also announced new bundle pricing incorporating its Disney+ product with ads.
For existing customers only, a bundle of Ad-Free Disney+ and Ad-Free Hulu and ESPN+ will increase by $1, from $13.99 to $14.99.
The price for a Disney+, Hulu, and ESPN+ package, all with ads, will be $12.99, which is $1 less than the current Disney package price.
Consumers will be able to purchase a Disney+ and Hulu package for $9.99 per month with ads. It’s a discount for paying Disney+ and Hulu separately with ads.
Pricing for an ad-free Disney+ and ad-free Hulu, with ESPN+, will be $19.99 per month.