Disney+ to introduce ad-supported subscription offering in late '22

Intended to provide greater accessibility to broader audience, give consumers more choice & control

In a first for Disney’s premier direct-to-consumer streaming service, Disney+ will expand its offerings for consumers by introducing an ad-supported subscription in addition to its option without ads, beginning in the U.S. in late 2022, with plans to expand internationally 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,” said Kareem Daniel, chairman, Disney Media and Entertainment Distribution. “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.”

A press release said, “Disney leads the market with quality and premium ad experiences. It is home to the industry’s premier ad-supported streaming services, including Hulu, a pioneer and leader among all ad-supported video-on-demand subscription services, and ESPN+, which continues to pave the way for direct-to-consumer sports programming and live events. This type of innovation, driven by advertising that is contextually relevant to viewers, will soon extend to Disney+.”

“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,” said Rita Ferro, president, advertising, Disney Media and Entertainment Distribution. “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 ad-supported offering is viewed as a building block in the company’s path to achieving its long-term target of 230-260 million Disney+ subscribers by FY24.

More details, including launch date and pricing, will be announced at a later date.