All good things must come to an end, and that even includes Disney+'s fairytale ad-free experience for just $7.99. The streamer announced it will be introducing an ad-supported tier and raising the price of it's ad-free version for U.S users starting Dec. 8. Disney will also be raising prices across its entire streaming brand following some big operating losses this year.
Beginning Dec. 8, Disney+ users who want to keep streaming without ads will now pay $3 more a month for their subscription with the ad-free tier priced at $10.99/month (a 38% increase). A new ad-supported tier will cost $7.99, which is what users are currently paying to watch without interruption.
Hulu subscriptions are also going up by $2 for the commercial-free version. On Oct. 10, Hulu without ads will jump from $12.99 to $14.99, while the ad-supported version will go from $6.99 to $7.99.
Wondering how this will affect bundles? This part gets a little confusing. For existing subscribers, the Disney+ without ads and Hulu and ESPN+ with ads bundle will increase from $13.99 to $14.99. Disney+, Hulu and ESPN+, all with ads will now be $12.99, while ad-free Disney+, Hulu, and ESPN+ bundle will stay the same at $19.99/month.
As for live packages, Hulu with live TV and Disney+, and ESPN+ with ads will be $69.99 per month, but existing customers can get ad-free Disney+ in the bundle for $74.99, and $82.99 for new customers.
Disney's decision to raise prices across the board also affects ESPN+, which is getting a 43% price hike going into effect this month. Starting August 23, the monthly ESPN+ subscription price will jump from $6.99 to $9.99/month, while annual plans will rise from $69.99 to $99.99/year.
Disney is losing money on streaming and they know it, but it's all part of the company's master plan for now. Disney+ is expected to keep losing money on Disney+ until 2024 when it will start turning a profit. Right now, Disney has 221 million streaming subscribers across Disney+, Hulu, and ESPN+.