Disney Plus Adding Ad-Supported Version In US Later This Year
Disney+ will be rolling out a cheaper, ad-supported subscription tier sometime in «late 2022,» the company announced.The tier will come to the US first before expanding internationally in 2023.
Aside from declaring the tier will come in at a lower price point, Disney hasn't indicated how much the ad-supported version of the service will cost. The standard, ad-free version currently costs $7.99 per month or $79.99 per year.
«More consumers will be able to access our amazing content,» said Kareem Daniel, chairman of Disney Media and Entertainment Distribution. «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 announcement comes months after Disney+ surpassed Netflix in new subscribers, and it seems the «streaming wars» are now shifting into a phase where each platform must get creative to sustain the considerable cost of producing so much content. In January, Netflix announced it will be modestly increasing its monthly rates by around a dollar per available tier--which, across their subscriber base, will add up quickly. Hulu, which Disney now owns and operates, offers both ad-free ($12.99 per month) and ad-supported versions ($6.99 per month).
A release indicates more information will be announced soon--and mainly emphasized the benefits of this new tier to advertisers. «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 of advertising for Disney Media and Entertainment Distribution. «Disney+ with advertising will offer marketers the most premium environment in streaming with our
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