With an international launch set for 2023
Disney+ is easily among the best streaming services out there, with an enticing content catalog containing a mix of original programming and classics from studios like Pixar, Marvel, and Lucasfilm. The service has been a massive hit right since the day it launched in mid-November 2019, garnering over 10 million subscribers within the first 24 hours. The 100 million subscriber mark came just 1.5 years after that, but growth has slowed down dramatically in recent times. Now, in a bid to further expand its user base and reach profitability by 2024, Disney plans to launch an ad-supported tier of its streaming service in the US.
A report from The Information citing a person aware of the internal discussion states that the move would also help further fuel the growth of Disney+, which is currently pegged to have above 130 million subscribers. The company hopes to have 230 to 260 million paid subscribers by 2024 to reach profitability. A cheaper plan from the house of the mouse won’t be surprising since other entertainment companies in this business like WarnerMedia, Discovery, and Paramount Global also offer ad-supported plans for their streaming service.
As of now, Disney+ only has an ad-free paid subscription plan that costs $8 per month or $80 per year, which is pretty cheap considering its massive content library and the slew of original programming it offers. The streaming service could very well launch a new tier with ads for $4.99 like Discovery+, and Paramount+ currently do. Disney’s own Hulu streaming service also offers an ad-supported tier that costs $6.99 per month in the US. The new plan would additionally provide the company with room to increase its ad-free subscription pricing, further helping it reach closer to its profitability goal. Currently, only Disney+, Netflix, and Apple TV+ are the three major services that do not offer a cheaper plan backed by ads.
UPDATE: 2022/03/04 15:05 EST BY WILL SATTELBERG
It’s official
Disney is officially bringing a subsidized ad-supported tier to customers in the US in late 2022, the company announced on Friday. No pricing details have been announced just yet, so for now, endless speculation will have to do. Today’s announcement specifically referenced targeting a lower price point, so we don’t expect any Netflix-style price hikes for the ad-free plan in the near future. Well, at least, not yet.
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