Disney+ Introducing New Subscription Option

A new subscription tier is coming to Disney+! Disney on Friday announced that its streaming service Disney+ will introduce an ad-supported subscription. The new subscription tier is set to roll out in the United States in late 2022, with Disney sharing that the tier will then roll out to its international markets sometime in 2023.

In announcing the new tier, the company said it is "viewed as a building block in the company's path to achieving its long-term target of 230-260 million Disney+ subscribers," according to Deadline. At the end of 2021, the streamer was at 130 million subscribers. Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution, revealed that since its launch, "advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there's a growing demand for more streaming inventory." Ferro added that Disney+ with advertising will offer marketers the most premium environment in streaming."

Currently, the streaming service only has three subscription options, all of which are ad-free. The first subscription tier is an ad-free monthly subscription, which costs $7.99 per month. The streamer also offers subscribers the option to pay for an annual subscription, which costs $79.99. A Disney Bundle is also offered that includes Disney+, ESPN+, and the ad-supported Hulu. That bundle costs $13.99 per month. Details about the upcoming ad-supported subscription tier, including price and launch date, have not yet been revealed. Deadline said those details would be announced "at a later date."

The decision to offer a new subscription tier will mean that Disney+ is opening the gates to fiercer streaming competition. With an ad-supported tier, Disney+ will be more competitive with the lower tiers of Hulu and Paramount+. Deadline also suggested that "down the line, the addition of advertising to Disney+ could be a harbinger of a long-predicted combination of Hulu and Disney+."

"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, Disney Media and Entertainment Distribution, said. "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."

Launched in November 2019, Disney+ offers a wide variety of content with a streaming library filled with content from Disney, Pixar, Marvel, Star Wars, National Geographic and more. The streamer releases new content every month, with upcoming March releases including Cheaper By the Dozen and Moon Knight.