Ad-Supported Tier of Disney+ Coming Later This Year in the U.S.

Yesterday, a report from The Information suggested that Disney was considering launching an ad-supported version of Disney+. Less than 24 hours later, the company has made it official, announcing plans to roll out the new option later this year.

What’s Happening:

While Disney+ has been ad-free since its launch, The Walt Disney Company now intends to introduce an ad-supported tier of the service.
This new version will debut in the United States in “late 2022” before rolling out internationally in 2023.
When it does arrive, the current ad-free experience will still be available, allowing users to choose which tier they prefer.
More details — including the price of the new offering — will be announced at a later date.
According to Disney, the introduction of the ad-supported tier will help keep the company on the path toward meeting its goal of having 230 million to 260 million Disney+ subscribers by fiscal year 2024.
Notably, while Disney+ had always been ad-free, Hulu has long offered both an ad-supported and premium ad-free tier.

What They’re Saying:

Kareem Daniel, Chairman, Disney Media and Entertainment Distribution: “Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers. 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.”
Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution: “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. Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”