The Mouse House has announced today that Disney Plus will introduce an ad-supported subscription option to U.S. users later this year, with intentions to offer the option in international markets in 2023.
Disney launched its streaming service in Nov. 2019, featuring a collection of TV shows and films from Disney-owned producers including Pixar, Marvel, Star Wars, National Geographic and more. The platform has offered monthly and yearly pricing options, as well as bundle options for Disney-owned streaming services ESPN Plus and Hulu.
In March 2021, the subscription price for Disney plus rose to $7.99/month or $79.99/year. The company reported in January that it has amassed 129.8 million subscribers in January during its brief lifetime, and boasts 196.4 million subscribers across Disney Plus, ESPN Plus and Hulu.
Disney Media and Entertainment Distribution chairman Kareem Daniel said in a press release that the move is a win for the streaming giant’s subscribers, advertising partners, and content creators: “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.”
Disney aims to reach 230-260 million subscribers on Disney Plus alone by the 2024 fiscal year.
President of advertising for Disney Media and Entertainment Distribution Rita Ferro emphasized the new options appeal not to subscribers, but potential new partners. “Advertisers have been clamoring for the opportunity to be part of Disney+,“ she said. “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,” Ferro said in reference to the May 17 event in New York where the company will showcase its portfolio to potential advertisers.
The language of the announcement suggests the subscription option may not be entirely free. Hulu also offers a tiered-priced subscription model featuring ad support. The service promises a launch date and pricing details will be announced at a later date.