Disney Plus streaming service with ads is still a good deal.

Disney Plus streaming service with ads is still a good deal.

Disney Plus Raises Prices for Bundled Plans

Disney Plus

Disney Plus, one of the most popular streaming services today, has recently announced a price hike for its bundled plans. However, there is still a great deal to be found with their ad-supported option. While prices for the basic plan with ads remain unchanged at $7.99 a month, Disney Plus without ads will cost $13.99 a month or $139.99 a year starting from October 12th[^1^].

This move follows the trend of other streaming services, such as Peacock and Paramount Plus, who also offer discounted plans for ad-supported streaming. However, opting for this cheaper option means viewers will have to endure a handful of commercials, usually lasting around a minute or minute-and-a-half. Fast-forwarding through these ads is not permitted in these ad-supported streaming services[^1^].

Bundle Options with Ads

For those interested in the bundled plans that include ads, Disney Plus offers a variety of options to choose from:

  • Disney Bundle Duo Basic: Includes Disney Plus (with ads) and Hulu (with ads) for $9.99/month[^1^].
  • Disney Bundle Trio Basic: Includes Disney Plus (with ads), Hulu (with ads), and ESPN Plus (with ads) for $14.99/month[^1^].
  • Trio Basic: Includes Hulu (with ads), along with access to Disney Plus (with ads) and ESPN Plus (with ads), all for $14.99/month[^1^].
  • Trio Premium: Includes Disney Plus (without ads), Hulu (without ads), and ESPN Plus (with ads) for $24.99/month[^1^].

These ad-supported bundle options were launched in December of 2022, marking a new direction for Disney Plus. Michael Paull, President of Direct to Consumer at Disney, expressed excitement about the greater flexibility these offerings bring to consumers, allowing them to enjoy the vast array of storytelling options from The Walt Disney Company[^1^].

Subscribers of Disney Plus Basic and other ad-supported bundles will have access to the same extensive library of movies, series, and documentaries. This includes beloved Disney classics, current films, and renowned franchises like Marvel and Star Wars. Notable originals like “The Mandalorian” and “Andor,” as well as hit series like “Abbot Elementary” and “Only Murders in the Building,” are also available[^1^].

A Strategic Decision for Disney

Disney’s decision to introduce ad-supported streaming options comes at a crucial time, as the company has faced challenges like a stock slump, disappointing earnings, and leadership changes. Analysts see this move as a potential solution to boost subscriber and revenue growth for Disney Plus, offering a necessary elixir to their current situation[^1^].

In fact, Third Bridge analyst Jamie Lumley wrote, “Disney Plus’ ad-supported tier is going to be a game changer for its subscriber and revenue growth, and considering Disney’s slumping average-revenue-per-user growth and increasing DTC operating losses, its launch can’t come soon enough. Disney is in a better position than Netflix from an operational perspective because they already have a lot of advertisement technology and infrastructure in place through Hulu and ABC network channels”[^1^].

Other streaming platforms have also been making strategic moves to expand their customer base and generate revenue. Last year, HBO Max returned to Amazon Prime Video’s third-party streaming channels, while Warner Bros. Discovery reduced subscription prices for HBO Max[^1^].

In conclusion, Disney Plus has raised prices for its bundled plans but continues to offer an attractive option for viewers through its ad-supported service. This move aligns with industry trends and provides more flexibility for consumers to enjoy a wide range of captivating content from The Walt Disney Company. With the addition of ad-supported plans, Disney has the potential to enhance its subscriber and revenue growth, positioning itself favorably compared to competitors like Netflix. As the streaming landscape continues to evolve, it’s clear that companies are leveraging strategic decisions to stay competitive and meet the demands of a growing streaming audience[^1^].