Disney+ rolls out new plans with ads, $3 price hike for ad-free version

Disney's streaming service `` Disney + '' has started a new plan with advertisements from December 8, 2022. The monthly fee is $ 7.99 (about 1160 yen), which is the conventional price for the plan with new advertisements, and the price for the plan without advertisements has been raised to $ 10.99 (about 1600 yen).

Disney+ Raises Prices by $3, Launches Cheaper Ad-Supported Tier - WSJ
https://www.wsj.com/articles/disney-with-ads-goes-live-11670515229

Disney debuts $7.99 ad-supported tier for Disney+
https://www.axios.com/2022/12/08/disney-streaming-ads-supported-subscription

Ad-Supported Disney+ Tier Is Here for $7.99 Per Month | PCMag
https://www.pcmag.com/news/ad-supported-disney-plus-tier-is-here-for-799-per-month

Disney+'s new ad-supported plan 'Disney+ Basic' will be available for $7.99 per month, and the ad-free plan 'Disney+ Premium' will be available for $10.99. Advertisements are scheduled to run for about 4 minutes per hour, and this ``4 minutes per hour'' advertising volume is ``lower than other streaming and TV advertising rates,'' said an official. More than 100 advertisers have signed up for the new ad-supported program, Disney said.

Also, if you select 'Disney+ Basic', which is the same price as before, the type of content that can be viewed is the same as 'Disney+ Premium', but the content download, offline playback, and playback position are automatically synchronized and separated. You cannot use GroupWatch , which allows you to view works at the same time even in different places, or SharePlay function using iPhone or Apple TV.

Please note that this new plan applies only in the United States. According to Disney spokeswoman Rita Ferro, it may consider a global adaptation in the 2023 fiscal year.

According to Disney's financial results announced in November 2022, the total number of Disney+ paying members has swelled to 164 million. In total, the total number reached 235.7 million, more than Netflix's membership. On the other hand, due to the increased cost of investing in streaming services, net income did not reach the initial sales forecast, and the Wall Street Journal, an economic media, said, ``Introduction of advertisements and regular plans. The price hike is an attempt by Disney to revitalize its flagship streaming service, which has lost more than $8 billion over the past three years.'

It turned out that the total number of paid members of Disney's streaming service reached 235.7 million and exceeded Netflix - GIGAZINE

According to The Wall Street Journal, Disney will announce company-wide cost-cutting measures in November 2022, telling leaders of each division that layoffs are likely. Since then, Disney's board of directors has dismissed CEO Bob Chapek and recalled former chairman and CEO Robert Iger, who left the company at the end of 2021. At this time, Mr. Eiger told employees that he would emphasize profitability rather than increasing the number of subscribers to Disney's streaming service at a company-wide meeting.

Investors and analysts expect higher monthly fees and additional ad revenue to be lucrative for the streaming sector, but worry the price hikes could lead to higher churn rates for the service.