Disney+ will be expanding its offerings for subscribers with a cheaper option that will include advertisements. According to a press release by the streamer, Disney+ will introduce a new ad-supported subscription tier, in addition to its other add-free options, beginning in late 2022. International markets will receive this option in 2023.
“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” Disney Media and Entertainment Distribution Chairmain Kareem Daniel said in the press release. “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.”
This will be a first for the streamer, as the original subscription options do not include advertisements. The new move will help Disney+ reach its long-time goal of reaching 230-260 million subscribers by the fiscal year 2024. The streamer currently has 129 million subscribers.
“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,” President of Advertising at Disney Media and Entertainment Distribution Rita Ferro said in the press release. “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.”
The type of ads that will come with this new tier has not been announced. According to Forbes, each of the ads will be contextually relevant to the viewer. It will likely be ads for Disney’s theme parks or promos for upcoming seasons of the platform’s original series.
This is one of a few announcements from the streamer this week. On Tuesday, it was announced that Disney+ will have new Parental Control settings starting March 16, upon the addition of the Marvel-Netflix shows such as Daredevil and Jessica Jones.
Details on pricing and launch date will be announced at a later date.