In a first for Disney’s premier direct-to-consumer streaming service, Disney+ will expand its offerings for consumers by introducing an ad-supported subscription in addition to its option without ads, beginning in the U.S. 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.”
No pricing or specific launch date was announced. The AVOD version of the service will be offered at a price less than the regular ad-free version, which in the U.S. costs $7.99 per month.
They lead the market with quality and premium ad experiences. It is home to the industry’s premier ad-supported streaming services, including Hulu, a pioneer and leader among all ad-supported video-on-demand subscription services, and ESPN+, which continues to pave the way for direct-to-consumer sports programming and live events. This type of innovation, driven by advertising that is contextually relevant to viewers, will soon extend to Disney+.
“Since its launch, advertisers have been clamoring for the opportunity to be part of our streaming service 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 a building block 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, will be announced at a later date.