Disney+ To Add Cheaper, Ad-Run Tier For Those Who Don’t Wish To Pay $8/Month

Fans of Disney programs who have yet to shell out for Disney+ content, priced at US$7.99 a month or US$79.99 per year, might be delighted to know the service will be launching a cheaper, advertiser-supported tier by the end of the year. 

According to CNBC, while Disney has yet to release a launch date or price for the new tier, it’s said that the lower-cost subscription will be expanded to international audiences next year.

The company hopes that by introducing more options, it’ll be able to reach its target of amassing 230 million to 260 million Disney+ subscribers by 2024.

“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 of 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,” he added. 

It’s likely the option will be modeled after Hulu, which is majority-owned by Disney, and already has an advertiser-supported tier. 

As per the Hollywood Reporter, subscribers to Hulu’s basic tier pay US$6.99 per month, as compared to US$12.99 per month for no advertisements at all. 

With Disney+ boasting a wider reach than Hulu, it’s certainly possible the streaming service will be able to generate more advertising revenue in addition to subscription revenue with this two-tier model.

[via CNBC and The Hollywood Reporter, cover image via Monticelllo | Dreamstime.com]