Disney+ adding cheaper ad-supported subscription tier later this year

Disney announced Friday that its direct-to-consumer streaming service Disney+ will be introducing an ad-supported subscription in addition to its option without ads, beginning in the U.S. in late 2022, with plans to expand internationally in 2023.

Disney+’s current ad-free subscription tier costs $7.99 per month or $79.99 per year. 

“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.”

The company said more details, including launch date and pricing, will be announced at a later date.

Disney said the ad-supported version of Disney Plus is a “building block” for the company’s target of reaching 230 million-260 million Disney+ subscribers globally by the end of its 2024 fiscal year. 

For the fourth quarter of 2021, Disney+ reached 118 million subscribers. As of January 2022, Disney+ passed a significant $2 billion milestone in lifetime global consumer spending across the app stores.

“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.”