Disney Plus will launch a lower-cost, ad-supported membership in the United States later this year to complement the $8-per-month ad-free subscription it already provides. the company announced on Friday. The ad-supported alternative will be expanded to Disney Plus globally next year, according to the firm.
Disney did not define the new tier’s pricing or debut date. Nor did it say if the introduction of the ad-supported tier would change how much an ad-free subscription costs.
The addition of a lower-cost option for Disney Plus is intended to make it easier for customers who are price-sensitive to sign up. As the number of streaming services has grown in the last two years. So has the number of services that customers must consider adding to their monthly budgets. However, Disney Plus is currently one of the most affordable streaming services of its kind. Disney officials have frequently stated that the service’s very low membership fee will climb as it adds more programmes.
Lowering the pricing barrier for new members is especially crucial for fledgling businesses like Disney Plus. Aside from that, lower levels with advertising may be more profitable than ad-free tiers. And Disney has a long history of doing so. For years, Hulu’s service has provided a lower-cost, ad-supported option.
Disney Vs Others
The decision adds Disney Plus to the expanding list of services deviating from the ad-free-only model set by Netflix. The world’s biggest streaming service with over 221 million global subscribers. HBO Max, Peacock, and Paramount Plus all have tiers. That incorporate commercials and advertisements in return for a cheaper monthly price.
“Bringing Disney Plus to a wider audience at a cheaper price point is a win for everyone — customers, advertisers, and our storytellers,” said Kareem Daniel, head of Disney’s streaming operations. “More customers will be able to access our incredible content. Advertisers will be able to reach a larger audience, and our storytellers will be able to share their wonderful work with an even larger audience of fans and families.”
Disney Plus presently provides a single ad-free membership option. Which costs $8 per month or $80 per year in the United States. In instance, Netflix, which has no commercials, has a $10 monthly tier, while its most popular package costs $15.50. Only Apple TV Plus, which costs $5 per month, is available.
Among the providers with ad-supported choices, Hulu is $7 per month with advertising and $13 per month ad-free. The ad-supported edition of Mount Plus costs $5, while the ad-free version costs $10. HBO Max costs $10 per month if you watch with advertising or $15 per month if you don’t.
(You can also combine Disney Plus with ad-supported Hulu and ESPN Plus for $14 per month. Or ad-free Hulu and ESPN Plus for $20 per month.)
Disney said on Friday that an ad-free tier was critical to achieve its target of 230 million to 260 million subscribers by the fiscal year 2024. Disney’s fiscal year 2022 began in October. As of January 1, the service has 129.8 million customers. Up from 11.7 million in the latter three months of 2021.
The Information had reported on Thursday that Disney Plus was thinking about adding an ad-supported tier.