Disney+ has just announced that it will soon be introducing a new subscription tier to its streaming service. The new subscription tier will be ad-based, a first for the previously completely ad-free streaming service.
Another Disney-associated streaming service, Hulu, has had remarkable success with its ad-based subscription tiers, especially considering its competitiveness with other, non-ad-based streaming services such as Netflix. HBO Max, a competitor with Disney+, previously announced that it was adding an ad-supported subscription tier. This new shift towards ad-supported streaming subscriptions allows viewers to pay lower subscription fees while still having access to streaming content.
This shift towards ad-supported streaming also comes with the increased saturation of streaming services. From broadcast networks such as Peacock hoarding their legacy properties to media behemoths looking to cash in on the now dominant form of media consumption, streaming is becoming less of a streamlined version of television and more akin to its cable predecessor, with complicated packages of subscriptions that end up costing as much as or more than run-of-the-mill cable subscription packages. Ad-supported subscription tiers on streaming services can help to alleviate the snowballing cost of streaming services. However, it does make these streaming services more akin to the traditional television model that they have replaced.
RELATED:10 Childhood Favorite Disney Movies You Should Rewatch As An Adult
Of the additional ad-based tier,Kareem Daniel, Chairman of Disney Media and Entertainment Division said, “[e]xpanding access to Disney+ to a broader audience at a lower price point is a win for everyone - consumers, advertisers, and our storytellers.” He continued, “[m]ore 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 added, “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." She continued, “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 addition of the ad-supported tier is a part of the media company’s long-term goal of reaching between 230 and 260 million viewers by the 2024 Fiscal Year. No exact release date for the new tier has yet been announced. However, it is set to be released later this year in the United States. It is set to expand internationally in 2023. No pricing details have yet been released.
