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Earlier this year, there were rumors about an ad-supported level of Disney+ that would presumably make the service more accessible to people. On Wednesday, Disney confirmed its plans to launch a new ad-supported tier during an investor call. However, despite the new subscription plan, Disney+ is getting more expensive in the US.

The Disney+ subscription is currently $7.99 per month. While the company will keep the same price on its basic plan now introduces ads for these users. Meanwhile, those who want to continue enjoying Disney+ ad-free will have to pay $10.99 per month, a 37.5% price increase.

According to Disney, the ad-supported Disney+ tier will have exactly the same content available on the more expensive tier. The company also notes that not all content will have ads, at least for now. Viewers are expected to watch four minutes of ads every hour of content. Most ads will last between 15 and 30 seconds.

Hulu, the streaming platform owned by Disney, is also getting a price increase. Hulu’s basic ad-supported subscription will go up from $6.99 to $7.99 per month, while the ad-free plan will go up from $12.99 to $14.99. A subscription to ESPN+, another Disney streaming service, will increase from $6.99 to $9.99 per month.

Disney earnings reports for the third quarter of 2022

Disney reported strong results for the third quarter of fiscal 2022 with $21.5 billion in revenue. In terms of streaming platforms, as of July 2, Disney+ had 152.1 million paying subscribers.

However, as CNBC notes, Disney+, Hulu and ESPN+ collectively lost $1.1 billion in the quarter. This is because the cost of content has become more expensive, and customers are also looking for cheaper “multi-product deals”. However, Disney hopes to reach even more consumers with packages that include Disney+, Hulu and ESPN+.

It’s worth noting that Disney+ isn’t the only platform that works at the ad-supported tier. Earlier this year, Netflix confirmed that it would have a more affordable subscription plan thanks to advertising and a partnership with Microsoft. However, unlike Disney+, Netflix’s ad support tier doesn’t provide access to the platform’s full catalog.

According to Disney, the new Disney+ subscription plans will go into effect on December 8th. At the moment, it is unclear how the new prices will affect markets other than the US.

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