Disney also reports that it’s earning more per Disney Plus subscriber than it had been previously, at least in the US. Where its average monthly revenue per paid subscriber used to be $6.01, it’s now sitting at $6.32. Disney says this is thanks to “an increase in retail pricing and a lower mix of wholesale subscribers.” Despite this, Disney Plus is actually losing the company money at a greater clip than it was before. Disney says this is thanks to higher costs for production, advertising, and technology. Those costs seem unlikely to go down, and raising prices, like Netflix did, could cut off its subscriber growth. All that put together makes it obvious why Disney is looking at creating an ad-supported tier sooner rather than later.
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