Disney Plus will add a cheaper tier with ads later this year

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Disney Plus is joining a growing roster of services with both ad-free and ad-supported options.

Sarah Tew / topwatchbest

Disney Plus later this year, it will introduce a cheaper subscription with ads in the US, which will complement its already offered subscription for $ 8 / month ad-free. Disney said Friday. The company said the ad-handling option will expand to Disney Plus internationally next year.

Disney has not specified a price or launch date for the new tier, nor has it specified whether the introduction of an ad-supported tier will affect the cost of an ad-free membership.

The addition of the cheaper Disney Plus option is intended to make it easier for price-sensitive people to sign up. As the ranks of streaming services have grown in the past two years, the number of services people need to consider to add to their monthly budgets has also increased. But Disney Plus is already one of the cheapest streaming services of its kind, and Disney executives have repeatedly noted that Disney Plus’s relatively low subscription price will increase as the service is packed with more programming.

Lowering the price hurdle to register new members is especially important with beginner services like Disney Plus. Aside from that, these cheaper ad-supported tiers can also be more profitable than ad-free ones, and Disney has a long history in this practice. Its Hulu service has offered a cheaper tier with ads for years.

This move puts Disney Plus among the growing number of services that deviate from the ad-free standard set by Netflix, the world’s leading streaming service, with over 221 million users worldwide. HBO Max, Peacock, and Paramount Plus all offer tiers that include advertising and advertising in return for a lower subscription price.

“Extending Disney Plus to a wider audience at a lower price is a win-win for everyone – consumers, advertisers and our storytellers,” said Kareem Daniel, president of Disney’s streaming division. “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 amazing work with more fans and families. ”

Disney Plus currently offers one ad-free subscription option, which costs $ 8 per month or $ 80 per year in the US. Relative, Netflixwhich has no ads, offers the cheapest tier for $ 10 / month, while the most popular plan is $ 15.50. Apple TV Plus onlyPriced at $ 5 a month, it’s cheaper than Disney Plus among the main competitors.

Among the services that have ad-supported options, Hulu on its own, it costs $ 7 a month with ads and $ 13 a month without ads. Paramount Plus they charge $ 5 for their ad-supported tier and $ 10 for the ad-free version. HBO max. that’s $ 10 a month if you’re watching with ads or $ 15 a month to remove all ads.

(You can also Disney Plus package with ad support Hulu and ESPN Plus for $ 14 or from Hulu ad-free and ESPN Plus for $ 20 a month.)

Disney said on Friday that the ad-free level was critical to meeting the target of 230 million to 260 million subscribers by fiscal 2024. Disney’s fiscal year 2022 began in October. The website had 129.8 million subscribers as of January 1, after adding 11.7 million members in the last three months of 2021.

Information released earlier on Thursday that Disney Plus considered the ad level.

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