In an announcement made today, Disney+ said that it will launch an ad-supported subscription plan in the United States later this year, with plans to expand internationally in 2023.
Disney didn’t mention a specific launch date or any pricing in the announcement.
According to Kareem Daniel, Chairman, Disney Media and Entertainment Distribution –
Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers. 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.
It has become very popular to add cheaper options with ads among subscription services. Last year HBO Max introduced a $10 per month plan that shaved $5 off the ad-free price, though it must be noted that in addition to adding commercials, the cheaper plan also is limited to HD content (and not 4K). Peacock on the other hand takes a more varied approach, offering a smaller selection of content with ads is completely free, with a $4.99 per month tier that offers the full library with ads, along with a $9.99 per month level that allows customers to download titles to watch offline and gets rid of (most, but not all) of the commercials.
Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution added –
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. 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.
What are your thoughts on this new version of the popular Disney+ service? Personally, I think I’ll stay with the ad-free version…at least for now.