Lower Prices Coming to Disney+

Cheaper Prices Are Coming to Disney+

March 8, 2022

Recent news indicates that some of our 2022 streaming market predictions are already coming true. Keep reading to find out which one (and why we're super excited about it)!

Ad-Supported Streaming Coming to Disney+

Last week, news broke that Disney is planning to include an ad-supported pricing tier to its Disney+ streaming service. According to multiple reports, Disney is planning to add this new pricing tier sometime in the fall of 2022.

1. Why Yes, We Did See This Coming

The ad-supported Disney+ announcement is right in line with one of the predictions we made in our December 21 newsletter. Here's what we wrote then:

"The cord-cutting market is still incredibly competitive. Straight price increases won't go over, and most subscribers will drop a service or two if they feel they're paying too much. Providers that recognize their own risk of losing customers may introduce unique pricing schemes to help salvage a potential bleed. This could include more free-with-ads models and new pricing tiers."

Disney+ subscriber growth has likely slowed, or the company sees this as the best option to boost the subscriber growth it wants over a certain threshold that it's trying to meet.

2. What Price Can We Expect?

While no price has been announced, a New York Times report notes that most ad-supported pricing tiers run 30% to 40% less than standard service. At $8 per month, that means Disney+ with ads could cost around $5.99 to $6.99 (its original price upon launch).

Could it be cheaper? Possibly, but not likely, especially because Disney already has cable networks and it doesn't want to compete too much against itself.

3. Will Others Follow?

The biggest competitor in the market to Disney+ right now is Netflix. Will Netflix also release an ad-supported model? Perhaps. Note that Netflix is increasing its US prices in 2022. That's not going to go over well with customers, and Netflix may start considering an ad-supported model, which it has historically been strongly against. It would probably take a few quarters of subscriber losses before the company would consider that, however.

This Week's Streaming Guide

1. Peacock Documentary Dives Into Crime in the Gaming World

In its two-part docuseries, Peacock's "Perfect World: A Deadly Game" pits gamers against a murderer in their ranks. Streaming today (March 8). -

  2. Storage Wars Returns with Season 14 

A&E's popular auctioning series "Storage Wars" returns this Wednesday (March 9) for its 14th season. Watch on A&E starting at 9 PM EST. -

  3. Disney+ 'Turning Red' Premieres 

Set some time with the kids to watch the new Disney movie, "Turning Red", available this Friday (March 11). -

4. Hit Prime Video Series "Upload" Back for Season 2

Return the digital world with Prime Video's comedy series "Upload" in its second season. Streaming this Friday (March 11). -

News and Industry Developments

1. Disney+ Rolling Out Ad-Supported Model

Coming to a TV near you in late 2022. -

2. Netflix Suspends Service in Russia

As the Ukraine war rages, Netflix joins the embargo. -

3. Soccer Matches Coming to HBO Max

A major deal will bring live soccer to the on-demand streaming service. -

4. NBC Officially Ends Its Relationship with Hulu

As Disney takes over and Peacock competes, NBC is officially dropping support for its competitor. -

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