Disney+ to Change UK Pricing and Introduce New Tiers
Disney+ is set to adjust its pricing in the UK following a significant loss of 11.7 million customers globally. Currently priced at £7.99 per month for UK users, the streaming service will introduce three new pricing tiers starting from November 1st. This decision comes after Disney+ experienced a 7.4% decline in international customers, bringing the total to 146.1 million in the three-month period ending in July.
The entertainment giant also reported a net loss of $460 million (£360 million) in the third quarter, a sharp contrast to the $1.4 billion (£1.1 billion) in profits generated during the same period last year. Despite these challenges, Walt Disney CEO Bob Iger remains optimistic, stating that the company is on track to cut costs by billions of pounds and has seen a 4% increase in revenue.
In addition to the pricing changes, Disney+ plans to crack down on password sharing in 2024, following in the footsteps of streaming rival Netflix. Iger also announced price increases for ad-free users in the US, citing a growing advertising market for streaming compared to traditional TV spots. The goal is to encourage more subscribers to migrate to the advertising-supported tier.
New Pricing Tiers for Disney+ UK
The revised pricing for Disney+ in the UK will include the following options:
- £4.99 per month: This plan offers a cheaper subscription with advertisements.
- £7.99 per month: The standard service allows streaming on two devices simultaneously.
- £10.99 per month: The premium version provides higher image quality and allows up to four simultaneous streams.
Existing subscribers will be automatically transferred to the premium version, unless they request to switch their plan. They will continue to be charged £7.99 per month until December. Similar pricing changes will also be implemented in Europe and Canada.
Positive Impact from Shanghai Disney Resort
Despite the challenges faced by Disney+, the company received a boost from the Shanghai Disney Resort, which remained open throughout the entire quarter. In contrast, the resort had to close for a significant portion of the same period last year due to COVID-19 restrictions.
However, Disney also experienced a loss of 12.5 million subscribers to its Disney Hotstar service in India. This decline was a result of relinquishing the rights to Indian Premiere League cricket matches.
Overall, Disney remains committed to adapting to the changing streaming landscape and is confident in its ability to navigate the current challenges.
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