In an attempt to expand its audience base, Dinsey+ will introduce an ad-supported subscription in addition to its option without ads, starting in late 2022 in the U.S. and will expand internationally in 2023, Disney announced today.
“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,” Kareem Daniel, Chairman, Disney Media and Entertainment Distribution, said.
No details have been released yet about pricing and how the price of the current ad-free version could change. Take into account that Hulu, also owned by Disney, has a $12.99 a month for ad-free and $6.99 a month for ad-supported compared to the current Disney+ ad-free version of $7.99 a month.
This could also have an impact on on the Disney bundle prices, in which you can bundle the Disney+ service with a variety of Hulu services and ESPN+.
This could also mean more discounted introductory rates for the first year or so to help boost subscribers.
The ad-supported Disney+ offering is viewed as a building block in Disney’s path to achieving its long-term target of 230million to 260 million Disney+ subscribers by FY24, according to the company.
“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,” Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution, said in a news release. “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.”
More details, including launch date and pricing, will be announced at a later date.
