Disney+ launches its ad-supported subscription tier

Disney+ has made its ad-supported subscription tier called Disney+ Basic available in the United States, at $7.99/month. The plan has been launched with more than 100 advertisers across all major categories at lunch. 

“Today’s launch marks a milestone moment for Disney+ and puts consumer choice at the forefront,” said Michael Paull, president, Direct to Consumer. “With these new ad-supported offerings, we’re able to deliver greater flexibility for consumers to enjoy the full breadth and depth of incredible storytelling from The Walt Disney Company.”

Unlike Netflix, Disney+ does not restrict access to its entire catalog for users who choose the ad-supported tier. The plan also keeps high-quality video formats such as 4K, ultra HD, Dolby Vision and IMAX Enhanced. On the other hand, Netflix’s ad supported tier only supports 720p HD video quality. 

“Today we welcome Disney+ with ads to the largest, most diverse and impactful portfolio in the industry,” said Rita Ferro, president, Disney Advertising. “We are committed to connecting our clients to the best storytelling in the world while delivering innovation and viewer-first experiences in streaming now and in the future.”

First announced in March, Disney+ Basic will display 15-and 30-second ads from advertisers such as Mercedes and Marriott. The company also has commitments from major media agencies, including Omnicom Media Group, Publicis, Dentsu, WPP’s GroupM, and more, said Ferro.   

Ferro also said, the majority of the advertisements would appear as so-called “pre-rolls” and “mid-rolls.” Disney has pledged to show no more than four minutes of commercials every hour and to refrain from running any political or alcohol-related advertisements.

Users who are recognized as pre-schools or young children under seven will not be served ads, while users who are identified as being under 17 will view ads but cannot be particularly targeted by advertisers.