Disney has announced it will offer an ad-supported version of its streaming service, Disney+. The ad-supported subscription will rollout across the United States in late 2022 and internationally in the following year. No details have emerged regarding pricing, however Disney has said that the ad-supported subscription will be offered at a lower price point than the ad-free service (currently priced $7.99 per month). The company considers the move a “building block” towards its goal of reaching 230-260 million total subscribers by the end of its 2024 fiscal year.
Kareem Daniel, Chairman, Disney Media and Entertainment Distribution 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”.
Rita Ferro, President of Advertising, Disney Media and Entertainment Distribution commented, “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. 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”.
By the end of 2021, Disney+ achieved a global total of 129.8m million paying subscribers and plans to increase spend on content in Q2 2022 by as much as $1 billion, compared to the same period last year.