Disney+ to Introduce an Ad-Supported Tier

This was inevitable, though Disney+ is among the most affordable streaming services, at least for now. I wonder if this is anticipating a price hike.

From Disney:

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.”

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.