As previously-announced, Disney+ is now more expensive – and there’s a new ad-supported tier users can select. This comes following a price increase for Apple TV+, as well as the launch of an ad-supported tier for Netflix … which still isn’t available to Apple TV users.
Disney first announced its plans to shake up the Disney+ offering back in August. The company hopes that a new ad-supported tier and higher prices for the ad-free tier will significantly help boost the profitability of Disney+. The company’s direct-to-consumer business, which includes Disney+, Hulu, and ESPN+, has lost billions of dollars over the last year.
The new ad-supported tier of Disney+ costs $7.99 per month, which is one dollar more per month than Netflix’s basic ad-supported plan. Netflix’s ad-supported offering, however, is limited to 720p streaming on one device at a time and the full catalog of content isn’t available due to licensing restrictions.
Disney+ Basic doesn’t have these same restrictions. You get access to the full Disney+ catalog of content, you can stream in 4K Ultra HD quality, and you can watch on up to four devices at a time. In terms of ad load, the ads on Disney+ will be 15 seconds, 30 seconds, or 45 seconds long. You can expect up to four minutes of commercials per hour.
Disney+ Basic, however, doesn’t support offline viewing because the ads are loaded at the time the content is played. This same restriction also applies to Netflix and other ad-supported streaming services. Disney+ Basic also lacks Dolby Atmos, GroupWatch, and SharePlay features, but the company told TechCrunch that it “hopes to support” these features in the future.
Perhaps most notably, Disney+ Basic is available anywhere the Disney+ app is available – which includes Apple TV. Netflix’s ad-supported plan is still not available on Apple TV, and there’s no timeline on when that will change. The company promises, however, that it will change at some point in the future.
With the launch of Disney+ Basic today, the ad-free Disney+ tier is getting more expensive. Starting today, Disney+ without ads will cost $10.99 a month, an increase from the previous price of $7.99 per month.
9to5Mac’s Take
With the launch of Disney+ Basic with ads, Apple TV+ is now the only major streaming service that doesn’t offer a more affordable plan that is supported by ads. Apple’s streaming service, however, hasn’t been immune to the price increases affecting streaming services.
In October, Apple announced that it was raising the price of Apple Music, Apple TV+, and the Apple One bundle. Apple Music now costs $10.99 per month for individuals, while Apple TV+ now costs $6.99 per month (up from $4.99 per month).
One thing that’s becoming clear is that these companies are growing tired of subsidizing their streaming services. Price increases have hit almost every streaming service in the last year. Investors are now looking for companies to increase profitability, something that companies are hoping can be done by raising prices and offering plans that are cheaper but have ads.
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