Disney (NYSE: DIS) announced this week it is increasing the cost of Disney+ to $10.99 per month, which is a three-dollar increase from its previous cost of $7.99 per month. This change in pricing will begin on December 8, and a new Disney+'s tier that includes advertisements will be raised to $7.99 per month.
In addition, the cost of regular Hulu will increase from $12.99 to $14.99 on a monthly basis, while the cost of Hulu with advertisements will jump from $6.99 to $7.99 monthly. This new Hulu pricing plan will take place beginning on October 10.
"With our new ad-supported Disney+ offering and an expanded lineup of plans across our entire streaming portfolio, we will be providing greater consumer choice at a variety of price points to cater to the diverse needs of our viewers and appeal to an even broader audience," said Kareem Daniel, Chairman, Disney Media & Entertainment Distribution. "Disney+, Hulu, and ESPN+ feature unparalleled content and viewing experiences and offer the best value in streaming today, with over 100,000 movie titles, TV episodes, original shows, sports and live events collectively."
In terms of the types of plans that Disney+ will offer, Disney+ Basic will offer around four minutes of commercials hourly, beginning with 15- and 30-second clips, and then gradually increase to a greater collection of commercialization with time. Disney has predicted that most of Disney+ consumers will primarily choose the less expensive plan that includes commercials.
Disney has also decided to make vital changes to its live television bundles. The Hulu live television bundle will now cost $69.99 monthly, and the live television bundle with Disney+ will be listed at a price of $74.99 monthly. Live television Disney+ and Hulu plans without commercials come at a cost of $82.99 monthly.
Overall, Disney intends to expand its audience and impact of its streaming services in terms of technicalities and level of communication with advertisers.