Disney is trying to make its streaming business profitable with a new pricing structure that includes an advertising-supported Disney+.
The price of Disney+ with commercials will be $7.99 per month starting December 8 in the U.S. The price of ad-free Disney+ will increase by a third.
The price of the service without ads will go up by $2 per month. The cost of ads will go up by $1 a month.
Disney said last month that it was going to increase the cost of the service by more than 40%.
Disney's streaming services are losing money. Disney+ lost more than $1 billion in the third quarter, $300 million more than the average analyst estimate, due to higher costs for content. Even though Disney added 15 million new Disney+ subscribers in the quarter, the operating loss went up.
Disney has said it will lose money on Disney+ until at least 2024.
The revenue per user for Disney+ decreased in the US and Canada due to customers taking cheaper products.
The company beat analysts' expectations on the top and bottom lines. Disney+ had 152.1 million subscribers in the most recent period, which was higher than Wall Street projections.
Disney has more streaming subscribers than any other company.
New bundle prices were announced by Disney.
The bundle of Disney+ without ads will increase by $1 for existing customers.
The current Disney bundle price is $1 higher than the new Disney bundle price.
Consumers will be able to purchase a Disney+ and Hulu bundle for a monthly fee. It is a discount to pay separately for Disney+ and Hulu.
The price of a no-ad Disney+ and no-ad Hulu has not changed.
Disney will have new prices for its streaming service. If you want to watch live TV and Disney+, you will have to pay $699.99 a month. There will be no commercials in the Disney+ bundle for existing customers. The premium bundle includes live TV, Disney+, and no ads.
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