Disney will increase the cost of its non-ad streaming services in connection with the December launch of its ad-supported Disney+ tier.
Later this year, Walt Disney Co. will introduce an advertisement-supported version of its popular Disney+ streaming service, and in line with the change, it expects to increase the cost of many of its streaming services.
The price of ad-free Disney+ will increase to $10.99 per month starting on December 8, according to executives at the media giant, who made the announcement on Wednesday. The service’s annual subscription has increased from $79.99 to $109.99.
The price of the ad-supported Disney+ service, which officials plan to debut on December 8, will be the same as that of the ad-free Disney+, which presently costs $7.99 per month.
Disney does not currently intend to provide an annual subscription plan for the less expensive Disney+ tier.
It will take effect before the price adjustments for Disney+ because Disney DIS, +3.30% is also raising the cost of Hulu, which already offered tiers with and without commercials. Disney plans to charge $7.99 a month for the ad-supported Hulu tier and $14.99 a month for the premium, ad-free tier, up from $6.99 a month for ad-supported service or $12.99 a month for the ad-free offering. Those changes go into effect on Oct. 10.
Corporate executives previously revealed that the monthly fee for ESPN+ would increase to $9.99 from $6.99, with that change to take effect on Aug. 23. The streaming service associated with ESPN only provides an ad-supported version.
The costs for some of the Disney streaming services will also alter, as many customers want to bundle them. A bundle combining the ad-supported versions of Disney+ and Hulu will be available from Disney for $9.99 per month. A version that also includes ESPN+ will cost $12.99 per month.
For a monthly fee of $14.99, existing members will be eligible for a package that combines ad-supported Hulu, ad-free Disney+, and ESPN+. The business will still charge $19.99 a month for a package that includes ad-free access to Disney+, Hulu, and ESPN+.
The cost of Hulu + Live TV will also change. Currently, the cost of Hulu+ Live TV with Disney+ and ESPN+, which includes both ad-supported Hulu and ad-free Disney+, is $69.99 per month.
That will be the new pricing for a tier that includes Disney+ in addition to the rest of the mix and will go into effect in December.
A premium Hulu + Live TV bundle that combines ad-free Disney+ and Hulu with ESPN+ and the live programming will also cost $82.99 a month, according to Disney. Such a service now has a monthly cost of $75.99.
Existing customers can purchase a $74.99 monthly package from Disney that includes ESPN+ and live programming, ad-free Disney+, and Hulu.
As per a business insider, the price hikes come as Disney topped expectations with its latest streaming subscriber numbers, bringing its total count of streaming subscribers —including Disney+, ESPN+, and Hulu —higher than that of rival Netflix Inc. NFLX, +2.72%.