Disney+ announced it will be offering a cheaper ad-supported subscription to make their services open to a ‘broader audience at a lower price’.
It was announced on March 4 the streaming service will be introducing an ad-supported subscription in addition to its current option without ads, beginning in the U.S. in late 2022, with plans to expand internationally in 2023.
Kareem Daniel, Disney Media and Entertainment Distribution Chairman, said the new subscription will mean more people will be able to access Disney+ for a lower price.
He said: ‘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.’
According to Disney+ the ad-supported expansion is a way for the company to achieve its long-term target of 230-260 million Disney+ subscribers by FY24.
Disney+ customers already experience ad-supported streaming when viewing TV shows and films via the Hulu and ESPN+ channels.
Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution said another reason for the expansion is down to advertisers ‘clamouring’ to get their ads on Disney+.
She said: ‘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.’
As it’s not due to be rolled out yet the actual price of the ad-supported streaming hasn’t yet been released, but the current subscription price is £7.99 per month.