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March 4, 2022 02:43 pm

Disney is Getting an Ad-supported Subscription Tier Later this Year

Disney+ will be introducing an ad-supported subscription tier later this year, Disney announced on Friday. From a report: The company didn't provide a launch date or pricing, but says it will release specific details about the new offering later this year. The new tier will roll out in the United States in late 2022, with plans to expand internationally next year. The streaming service's current ad-free plan costs $7.99 per month or $79.99 per year. Adding a cheaper ad-supported tier for the streaming service will likely help the company further expand its subscriber base. In a press release, Disney said the new tier will be a "building block" in its path to achieve its long-term target of 230-260 million Disney+ subscribers by 2024. "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, the chairman of Disney Media and Entertainment Distribution, in a statement. "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." Following the launch, the streaming service will join several other streaming services that offer ad-supported tiers, including HBO Max, Paramount+ and Discovery+. Hulu, which Disney owns and operates, also offers an ad-supported tier for $6.99 per month.

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