Disney+ has announced plans to introduce a cheaper, ad-supported subscription tier in the UK this November, as the streaming service seeks to boost its subscriber base amid ongoing financial losses. The new 'Standard with ads' plan will cost £4.99 per month, offering 1080p video and simultaneous streaming on two devices.
Alongside the ad-supported option, Disney+ will introduce two other tiers: 'Standard' at £7.99 per month (ad-free, with downloads) and 'Premium' at £10.99 per month (4K video, four devices). Existing UK subscribers currently enjoy Premium-level benefits, meaning they will face an effective £3 monthly increase to retain the same features.
The move follows a similar strategy by rival Netflix, which launched an ad-supported tier last year. Disney also plans to crack down on password sharing, a measure Netflix has already implemented. The company reported a loss of $460m (£361m) in the quarter ending 1 July, compared to a $1.4bn profit a year earlier, despite a 4% revenue increase.
Disney's streaming losses narrowed to about $500m in the latest quarter, partly due to workforce reductions and content spending cuts. Core Disney+ subscriptions grew 1% to 105.7 million, though the company acknowledged disappointing film performances and a 24% plunge in Indian Hotstar subscriptions after losing cricket rights.
Chief executive Bob Iger expressed confidence in Disney's long-term trajectory, stating, 'I'm incredibly confident in Disney's long-term trajectory.' The company also noted a decline in visitor numbers at its Florida theme park, attributed to post-pandemic normalisation and reduced international travel.
