Photo: Disney+
An ad-supported tier is soon to feature in streaming service Disney+ to encourage its growing subscriber base.
Details regarding the new subscription tier are still limited. However, Disney has previously stated that the new ads tier will join the subscription option in the United States later this year. The company said that the exact launch date and pricing will be announced at a later time, alongside an international expansion in 2023.
Kareem Daniel, Disney Media and Entertainment Distribution chairman, said in a statement, “Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone.”
He added, “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”
The company sees the ad tier as a “building block” in its goal of reaching 230 million to 260 million long-term subscribers by the 2024 fiscal year.
Disney+ had nearly 130 million subscribers as of January 1. As a result, it is considered one of the biggest competitors in the streaming market. By offering a cheaper ad-supported tier, Disney+ now joins services like Paramount+, NBC’s Peacock, and WarnerMedia’s HBO Max.
Netflix, the streaming leader with nearly 222 million subscribers, has previously said that it will not add an ads tier.
But for Disney, a cheaper tier may help the rapid growth of the company’s most important asset and bring in more profit to offset high content costs.
