Successful ad-supported Disney+ subscription expands to Europe as of November 1 – Disney

From March to September 2023, Disney reported that 50% of new subscribers chose the $7.99 option instead of the ad-free Premium subscription option.

This shows that ad-supported subscription is gaining ground, with 40% of all subscribers earlier this year choosing the cheaper Disney+ option. Disney originally launched the ad subscription in December 2021 and now appears to be pushing more subscribers towards this cheaper option.

Specifically, as of November 1, the new package will be available in the United Kingdom, France, Germany, Switzerland, Italy, Spain, Norway, Sweden and Denmark.

Regarding Disney’s pricing policy, in France, Germany, Italy, and Spain, the Standard Monthly Plan with Ads costs €5.99, the Monthly Standard Plan costs €8.99, and the Annual Standard Plan costs €89.90. The highest monthly installment plan costs €11.99 while the annual premium plan costs €119.90.

The standard comes with ads and the standard package with 1080p HD video quality with two simultaneous streams, 5.1 audio, and stereo. The premium package features 4K UHD video quality, HDR (high dynamic range), four simultaneous streams and Dolby Atmos audio. Downloads are not allowed in the Standard tier with ads while they are available in the other two tiers.

While Disney raised the price of the ad-free package in the US from $10.99 to $13.99, it left the price of the ad-supported subscription at $7.99. As Disney’s CEO stated, this pricing strategy aims to move more subscribers to the cheaper option.

While it may seem strange to push subscribers to the cheapest package, Disney generates additional revenue from advertising, which is also true of Netflix’s counterpart model.

As Disney+ continues to push subscription with ads, it is scheduled to launch in Canada and several European countries starting November 1st. More information on progress is expected in the near future, as well as Disney’s plans to address the shared password issue.

What’s certain is that the shift to an advertising model appears to be paying off for Disney+, attracting new subscribers while keeping costs low. Meanwhile, advertising revenue makes up for the difference in subscription costs. It remains to be seen whether this strategy will be extended to other countries in the future, including Greece where the only option currently available is Premium at a cost of €8.99.