While some subscription services have launched more affordable ad-supported subscription versions to cater to audiences looking for more budget-friendly memberships,
The original Disney+ subscription cost $6.99 per month, but one-year bundles practically offered two months for free.
Credit Suisse managing director Doug Mitchelson asked Chapek on Tuesday at the Credit Suisse 23rd Annual Communications Conference whether an ad-supported option will be available down the line. HBO, Paramount, and Hulu are among the streaming services that have ad-supported versions.
Viacom CBS announced earlier this year that Paramount+ will cost $4.99 in the US with ads. The ad-free option is priced at $9.99. That’s as expensive as HBO Max’s ad plan, which launched recently. Ad-free
Chapek said that the ad-supported tier isn’t something
“We’re always reevaluating how we go to market across the world, but we’ve got no such plans now to do that. We’re happy with the models that we’ve got right now,” Chapek said. “We won’t limit ourselves and say no to anything. But right now, we have no such plans for that.”
“We did launch at a very attractive price-value opening point,” Chapek said. “The first price increase that you mentioned in the first 16 months happened recently, and we’ve seen no significantly higher churn because of that.”
Chapek also explained at the event that Disney’s reorganization to create and distribute more content for streaming is working out of the company. “Despite how profound that change was for us, relative to how we operated and particularly how the industry operated, it really has got strong buy-in by our execs,” he said. “Everyone appreciates the fact that they have more time to do what they do best, given the increase in output we have.”
Even at $7.99, Disney+ is more affordable than competitors. At that price, Disney+ is an attractive streaming option to families and