Disney+ will launch an ad-supported subscription option alongside its ad-free option in the United States in late 2022, with plans to expand internationally in 2023.
Disney already offers ad-supported streaming services such as Hulu and ESPN+.
The launch of an ad-supported offering, on the other hand, would bring Disney+ in line with some of the other major players in the streaming space. As the market for subscription services becomes more competitive and consumers show less willingness to pay for additional services, WarnerMedia, Discovery, NBCUniversal, and Paramount have launched ad-funded streaming offerings to supplement paid-for services. Netflix continues to be a stumbling block in the face of ad-funded premium service variants.
Disney’s ad-supported offering is viewed as a stepping stone toward the company’s long-term goal of 230-260 million Disney+ subscribers.
More information, including a launch date and pricing, will be released at a later date, according to Disney.
“Providing a broader audience with access to Disney+ at a lower price point benefits everyone – consumers, advertisers, and our storytellers.” More customers will be able to access our incredible content.
Advertisers will be able to reach a larger audience, and our storytellers will be able to share their incredible work with even more fans and families,” said Kareem Daniel, Chairman of Disney Media and Entertainment Distribution.
“Advertisers have been clamoring for the opportunity to be a part of Disney+ since its launch, and not just because there is a growing demand for more streaming inventory.”
With our most beloved brands, Disney, Pixar, Star Wars, Marvel, and National Geographic, Disney+ with advertising will provide marketers with the most premium environment in streaming. “I’m excited to share more with advertisers at the Upfront,” said Rita Ferro, President of Advertising for Disney Media and Entertainment Distribution.