Disney+ to Introduce Ad-Supported Low-Cost Subscriptions in US in 2022, Looks to Expand Globally in 2023

Disney Friday said it will offer a cheaper, ad-supported version of its Disney+ streaming service later this year as it seeks to reach its goal of profitability by 2024. The company also said that it plans to introduce these subscriptions internationally in 2023.

Disney joins a growing number of media companies, including AT&T's WarnerMedia, Comcast, Discovery and Paramount Global, in offering ad supported tiers of their streaming services to capture price-sensitive customers.

“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone - consumers, advertisers, and our storytellers,” Kareem Daniel, chairman of Disney Media and Entertainment Distribution, said 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.”

Pricing was not disclosed.

Ad-supported services borrow from a model that has sustained television for decades, with commercials subsidizing the cost of programming.

"There's a load of people that will never pay for television," said Discovery CEO David Zaslav in a recent Discovery investor call, "But they can go to and view this content and that'll be advertiser supported."

Disney already offers ad-supported versions of its Hulu and ESPN+ streaming services.

© Thomson Reuters 2022