The Walt Disney Co. is making an ad-supported version of its Disney+ streaming service available in Canada and select markets in Europe. The Burbank-based entertainment and media giant is also making price adjustments for its U.S. customers of Disney+, Hulu and ESPN+.
Joe Earley, president, Direct-to-Consumer, Disney Entertainment, said that the strong momentum of its ad-supported plans in the U.S. demonstrates the importance of providing consumers with choice, flexibility and value.
“We are excited to expand that offering in more markets across the globe, including in Europe and Canada,” Earley said in a statement.
Internationally, Disney+ is also expanding choice and value options with the launch of a new Standard tier, as well as Standard with Ads in select European markets and Canada starting Nov. 1.
The new ad-supported plans start at £4.99/€5.99 a month in Europe and $7.99 a month in Canada. Existing subscribers in applicable markets will remain in the Premium tier with No Ads when their subscription price increases in December, unless they opt to switch into one of the new lower-priced plans, Disney said.
For U.S. customers the price changes go into effect Oct. 12.
Disney+ without ads goes up by 27% to $13.99 a month and ad-free Hulu increases by 20% to $17.99 per month. ESPN+ with ads gets a 10% price hike to $10.99 a month.
A new bundle of ad-free Disney+ and Hulu will be available on Sept. 6 for a cost of $19.99.
Ad-supported Disney+ and Hulu prices remain unchanged at $7.99 for each service. The bundled version of both together with ads also remains unchanged at $9.99.
Disney Chief Executive Bob Iger noted in a conference call with analysts to discuss fiscal third-quarter financials that the company is deliberately trying to steer users toward its ad-supported services by keeping prices for those services the same. The advertising landscape for streaming is healthier than traditional linear TV, Iger added during the call.
Disney has added 3.3 million subscribers for its U.S. advertising-supported service after it launched in December, Iger announced on the call. About 40% of new Disney+ subscribers have signed up for the ad tier, he said.
“This year alone, we’ve raised prices in nearly 50 countries around the world to better reflect the value of our product offerings, and the impact on churn and retention has outperformed our expectations,” Iger said.
