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Disney+ Subscription Update: Price Increase Coming to Ad-Free Premium Tier
Yesterday in the Walt Disney Company Q2 Earnings Call it was noted that Ad-Free Premium Tier Disney+ Subscription would be experiencing a price increase later this year.
The company has not disclosed the exact amount of the upcoming cost increase, nor have they clarified whether it will affect the Disney+ Basic tier.
Related – Disney will launch a combined app for Disney+ and Hulu this year.
Bob Iger, the current CEO of The Walt Disney Company, has expressed the company’s intention to leverage “price elasticity” for their streaming service, Disney+. Their goal is to increase the differentiation between ad-supported and ad-free subscriptions. Additionally, they aim to drive more subscriptions to the Disney+ Basic Tier, despite its lower price point.
Regarding this matter, Iger stated, “We have only scratched the surface of what we can achieve with advertising on Disney+. I am optimistic about our long-term advertising strategy. Furthermore, the pricing adjustments we have already implemented have yielded positive results, and we plan to raise the price of our ad-free tier later this year to better reflect the value of our content.”
Related – Disney+ Saw a Drop of 4 Million Subscribers During Q2 2023
The company is pursuing this strategy due to the significant growth potential of digital advertising, particularly within the Disney+ Basic subscription tier. Iger sees this as an opportunity to generate substantial revenue through the ad-supported service.
Additionally, European subscribers can anticipate the introduction of the Disney+ Basic ad-tier subscription later this year. However, specific details regarding its release have yet to be disclosed.
This price increase was piggybacked on the news that Disney will launch a combined app for Disney+, ESPN+, and Hulu later this year.
