Disney+ is raising prices, adding tier with ads 

Disney+ just will launch a new subscription tier on December 8, in which users can pay $7.99 a month if they are willing to watch ads, the company announced on Wednesday. 

The price for the new tier is the same Disney+ consumers are paying right now. Those who want to keep watching the streaming service’s content without commercials will have to pay an additional $3. 

The new $10.99 a month price tag is the largest price increase that the subscription service has had since it debuted in November 2019. In March 2021, it raised prices by $1. 

The price increase comes despite the streaming service’s great performance this quarter. Disney+ had 14.4 million subscribers in the third quarter, increasing its shares by 6.5% in after-hours trading. 

The Disney+ streaming service currently has 152.1 million subscribers. However, across Disney’s multiple streaming services combined—Hulu, Disney+, and ESPN+—the company has more than 221 million subscribers—more than Netflix’s 220.6 million. 

Disney plans to have 260 million subscribers by the end of the fiscal year 2024. 

“We remain confident that Disney Plus will achieve profitability in fiscal 2024,” Disney CFO Christine McCarthy said during an earnings call. 

Disney is also raising the price of Hulu, another subscription service it owns. The add-free tier will increase from $12.99 a month to $14.99. The ad-supported tier will cost $7.99, a dollar more than the current pricing. Hulu’s new prices will go into effect on October 10.