Disney+ with ads will cost $7.99 per month, the same price the company currently charges for the ad-free version, Disney said in a statement Wednesday. The cost of ad-free Disney+ will increase by $3 per month to $10.99 from December 8.
Prices on Hulu, also owned by Disney, will increase by $1-2 a month depending on the plan.
In 2017, Disney staked its future on creating a streaming service to rival Netflix as audiences shifted from traditional cable and broadcast television to online viewing.
In the just-ended quarter, Disney added 14.4 million Disney+ customers, beating the consensus of 10 million expected by analysts polled by FactSet, as it launched the “Star Wars” series “Obi -Wan Kenobi” and Marvel’s “Ms. Marvel”.
Combined with Hulu and ESPN+, Disney reported having 221.1 million streaming subscribers at the end of the June quarter. Netflix said it had 220.7 million streaming subscribers.
Disney posted adjusted earnings per share of $1.09, up 36% from a year earlier as guests flocked to its theme parks. Operating profit more than doubled in the parks, experiences and products division to $3.6 billion.
Disney’s streaming effort continues to lose money, losing $1.1 billion for the quarter. This weighed on the media and entertainment unit, whose profit fell 32% to nearly $1.4 billion.
Overall revenue increased 26% from the prior year to $21.5 billion. A consensus of analysts polled by Refinitiv had forecast revenue of $20.96 billion.