The streaming service Disney+ will launch an ad-supported offer in select markets across Europe and in Canada on November 1.
The move follows the successful ad-tier launch in the US and as pricing is updated for various plans later this year, subscribers in the country will have access to a new ad-free bundled subscription plan, starting September 6, featuring Disney+ Premium and Hulu (No Ads) for $19.99/month.
Commenting on the rollout, Joe Earley, president, Direct-to-Consumer, Disney Entertainment, said: “The strong momentum of our ad-supported plans in the US demonstrates the importance of providing consumers with choice, flexibility and value.
“We are excited to expand that offering in more markets across the globe, including in Europe and Canada, and to launch a new premium duo bundle of ad-free Disney+ and Hulu this Fall, as we take steps toward making extensive Hulu content available via Disney+ later this year for Bundle subscribers”.
Internationally, Disney+ is also expanding choice and value options with the launch of a new Standard tier, as well as Standard with Ads in select EMEA markets and Canada. The new ad-supported plans start at £4.99/€5.99 month in EMEA and $7.99/month in Canada. Existing subscribers in applicable markets will remain in the Premium tier with No Ads when their subscription price increases in December, unless they opt to switch into one of the new lower-priced plans.
The rollout of the ad tier comes alongside the news that Disney+ continues to lose paid subs. In the US and Canada, it had a total of 46 million at the end of June, down 1% from the 46.3 million posted three months earlier. While the international total excluding Disney+ Hotstar rose by 2% from 58.6 million to 59.7 million over the same period, Disney+ Hotstar itself saw its total slump by 24%, from 52.9 million to 40.4 million.
In terms of ARPU, Disney+’s figure stood at $7.31 the quarter, up 2% on the previous quarter. Internationally, excluding Hotstar, it was $6.58 (+2%), while Hotstar’s was unchanged at $0.59.
Disney notes that its D2C revenues in the quarter increased 9% to $5.5 billion and operating loss fell to $0.5 billion from a loss of $1.1 billion. The latter was due to a lower loss at Disney+, higher operating income at Hulu and a lower loss at ESPN+.
