Disney announced they will be offering a new, cheaper subscription option for their streaming service Disney Plus. The new option, which is scheduled to be made available in the U.S later this year, will have a reduced price tag and include ads.
Disney Plus' ad-supported option will be available in the U.S by the end of 2022, followed by plans to expand internationally in 2023. This new ad-supported subscription option is said to be a step towards Disney's plan to reach 230-260 million Disney Plus subscribers by the fiscal year 2024.
Additional details on the launch date and pricing will be announced at a later date. "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,” said Kareem Daniel, Disney's Chairman of Media and Entertainment Distribution, in an official statement. Rita Ferro, Disney Media's President of Advertising and entertainment distribution, added, “Since its launch, advertisers have been clamouring 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.”
Since its launch in November 2019, Disney Plus has been home to dozens of original shows and movies from Marvel Studios and Lucasfilm studios. It's also expanded its massive library of content both in the U.S and internationally, where programs and films from other Disney-owned properties, such as 20th Century Studios, have been added. It was also recently announced that Disney Plus had acquired the streaming rights to the previously cancelled Netflix and ABC Marvel shows such as Daredevil, Jessica Jones, and Agents of S.H.I.E.l.D, thus increasing its already massive library of content.
Disney's current subscription costs users $7.99 a month in the U.S or $79.99 annually. Disney Plus is not the first streaming service to offer a similar ad-supported tier. The Disney-owned U.S based streaming service Hulu also offers an ad-supported option at $6.99 a month, or $69.99 per year. Warner Media's HBO Max offers this option at $9.99 a month, and NBCUniveral's more recent streaming service Peacock offers an ad-supported subscription for free.
This Disney Plus news also comes at an interesting time. Netflix recently announced that it would be increasing its subscription cost, much to some users' chagrin. Unlike other streaming services, Netflix does not offer a cheaper ad-supported option.
Source: Disney