Disney is raising prices for both Hulu and Disney+ in the US. But for consumers looking to spend less, the company is preparing an ad-supported version of Disney+, which arrives in December.
Starting Dec. 8, the standard Disney+ plan will cost $10.99 per month or $109.99 per year, up from the current $7.99 and $79.99 rate.
Ad-based Hulu, meanwhile, will cost $7.99 per month or $79.99 starting on Oct. 10, an increase from the current $6.99 or $69.99 price. The ad-free version of Hulu is going up too, and will cost $14.99 per month, an increase from $12.99.
The good news is that the Mickey Mouse company is preparing an ad-supported version of Disney+ in the hopes of reaching more consumers. It’ll arrive on Dec. 8. However, the ad-supported version costs $7.99, the same rate as an existing Disney+ subscription.
Disney CEO Bob Chapek signaled he’s raising prices to help pay for production of shows and movies on Disney+, which he noted already had a low price relative to the competition. In contrast, Netflix now costs $15.49 per month for a standard plan following a January price hike.
“Since that initial launch [of Disney+], we’ve continued to invest heavily in content as you know,” he said during an earnings call. “We believe that because of an increase in investment over the past two and a half years relative to a very good price point that they’ll be plenty of room for price value.”
The company first mentioned the price increases ahead of its Q2 earnings report. In North America, Disney+ grew its subscriber base by only 100,000 paying users from the previous quarter. However, the video-streaming service saw significant growth in foreign markets, bringing the subscriber base for Disney+ to 152 million, up from 137.7 million in the previous quarter.