Disney+ has no plans for ad-supported tier, says CEO Chapek

Disney+ series 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 earlier this year, is satisfied with its subscription revenues.

“We’re always re-evaluating 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,” said Chapek, as reported by The Verge. “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 more than 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.

Late last month, Chapek also announced that Disney will close 100 international TV channels by the end of the year as the Mouse House continues to shift its focus to Disney+.

Chapek revealed plans to switch off further networks, following recent closures in the UK, Australia and New Zealand, with more to follow in Southeast Asia and Hong Kong in October.

He added that which channels and when they would close will depend on the contacts that Disney has in those individual markets.