Disney says the introduction of an ad-supported subscription offering, slated for late 2022, will give consumers more choice and control.
Disney+ is set to expand its offerings for consumers by introducing an ad-supported subscription in addition to its option without ads, beginning in the US in late 2022, with plans to expand internationally in 2023.
“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” said Kareem Daniel, chairman, Disney Media and Entertainment Distribution. “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.”
Among Disney+’s major rivals, Netflix and Amazon Prime Video do not include ad-supported options. Disney is already home to several ad-supported streaming services, including Hulu and ESPN+, and plans to use its expertise and innovation in using advertising that is contextually relevant to viewers, to extend the Disney+ options available to subscribers.
“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,” said Rita Ferro, president, Advertising, Disney Media and Entertainment Distribution. “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.”
The ad-supported offering is viewed as the next step in the company’s path to achieving its long-term target of 230-260 million Disney+ subscribers by FY24.
More details, including launch date and pricing, are to be announced at a later date.