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No plans for ad-supported Disney+, says Chapek

Disney+ original Loki

Disney has no plans to follow the likes of HBO Max and Paramount+ in launching a cheaper ad-supported tier for Disney+.

In comments made at the Credit Suisse 23rd Annual Communications Conference, Disney CEO Bob Chapek said that Disney+, which upped its prices by US$1/£1/€1 earlier this year, is satisfied with its subscription revenues. As reported by The Verge, he said: “We’re always reevaluating how we go to market across the world, but we’ve got no such plans now to do that. We’re happy with the models that we’ve got right now. We won’t limit ourselves and say no to anything. But right now, we have no such plans for that.”

The CEO also noted that Disney+ has seen “no significantly higher churn” as a result of the increased price point.

Disney+ currently has over 100 million subscribers less than two years after it first launched in November 2019, but an increasing adoption in Southeast Asia is driving ARPU down. In Q2, overall monthly revenue per subscriber has decreased from US$5.63 to US$3.99. 

During the conference, Chapek also revealed that ad revenue for the upcoming fall TV season was up by double-digits from pre-pandemic numbers, while about 40% of sales during Disney’s upfronts went to streaming or digital ads.

Elsewhere, former Disney CEO and current chairman Bob Iger earlier this month sold shares of the company worth US$98.7 million. According to a regulatory filing, Iger sold 537,304 shares at an average price of US$179.2 per share, and 13,266 shares at an average of US$179.76 each. Iger’s decision was motivated by a desire to diversify his portfolio, Disney said.