Today Disney + celebrates a somewhat misleading fact. The streaming service of the largest cinema giant of our time has announced that has surpassed in subscribed users the (until now) almighty Netflix. Of course, adding the subscribers of all its services. Not only Disney +, but also ESPN + and Hulu, with the more than likely possibility that users will be shared among all. Still, the figure is powerful.
Not only that, but Disney + can boast of having reached 150 million users in a period 5 times less than what it cost Netflix. A little less than 3 years compared to 12 and a half years for Netflix, in fact. And to “celebrate” the company raises prices and presents a plan with ads that is far from free. Because Disney + grows, but its losses do not disappear.
Expected but unpleasant: Disney + raises prices again
It already did it when Star was incorporated into its contents, and it does it again. According to Deadline, Disney + has decided to raise prices in its country of origin, the United States, and the rise will be sensitive. The current price plan of 7.99 dollars, which costs 8.99 euros in Spain, is increased to $10.99. The offer of paying only 10 months is maintained if the entire year is contracted, so the annual plan goes from $79.99 to $109.99.
We talk about an increase of almost 40% that probably will not take long to be replicated by a good part of its competition. Let us remember that Netflix has already had several uploads in recent years, that Prime Video has done the same and that HBO Max itself anticipates changes with its merger with Discovery + between now and the end of this year. Disney + supports losses at the moment around 1,000 million euros per year and the company will try to stop them with this price increase for its users.
However, a small door is opened to maintain prices, although it will not be without cost. Starting December 8, Disney+ will debut a plan with ads in the United States. Advertising, following in the wake of a Netflix that handles the same plan. And this plan with ads will keep the same price as the current one. So users will be able to choose to continue paying the same (8.99 euros in Spain) in exchange for seeing 4 minutes of ads for every hour of content.
In other words, in a movie like ‘Avengers: Infinity War’, with a duration of 2:29 minutes, we would have to see about 10 minutes of advertising. It remains to be seen if it would be interspersed, at the beginning or with some other type of formula. But we repeat, in exchange for paying the same monthly payment as now. If the model is replicated in Spain, which is expected, we would have here a plan with ads that would cost 8.99 euros per month, or 89.99 euros per year.
“With our new ad-supported Disney+ offering and an expanded lineup of plans across our streaming portfolio, we will provide a greater variety of consumer choices at a variety of price points to meet the diverse needs of our viewers and attract a even wider audience– Kadeem Daniel, President of Disney Media & Entertainment Distribution
We will see how this news is received in the market, something that we will be able to verify in the next few hours as the respective bags open. What seems evident is that Disney does not want to keep bleeding losses for much longer caused by its streaming service despite the growth in users. Recall that Disney itself stated that Disney+ would become profitable by 2024 or 2025. Is it too long?
Via | dead line