Disney+ will begin to offer an ad-supported subscription tier later this year in the United States. This will be in addition to the current offering that has no ads. While this will be released initially in the United States in late 2022, there are plans to expand it international in 2023. The new tier will offer another option for consumers at a presumably lower monthly price point. It will offer Disney more revenue from more consumers and also advertisers.
“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” said Kareem Daniel, Chairman, Disney Media and Entertainment Distribution. “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.”
This won’t be the first time that Disney has offered an ad-supported streaming service. It already has ad-supported options for Hulu and ESPN+. It is natural that it would be offered on its premiere streaming service, Disney+.
“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory,” said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. “Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”
Disney is currently aiming to reach 230-260 million Disney+ subscribers by its 2025 fiscal year. This ad-supported option for Disney+ will be a part of the path to reach that mark. At this time, a specific release date has not been announced. Prices for the ad-supported version of Disney+ also will be announced at a later date.
What do you think of an ad-supported version of Disney+ being offered? Are you excited about it? Will you use it or will you stick with the ad-free version? Share your thoughts and opinions in the comments below!