In an attempt to make its streaming service more attractive to non-subscribers, Disney has announced that it will introduce a cheaper ad-enabled tier to Disney+.
The new tier, which as of right now doesn’t have a price, will be introduced in the United States in late 2022, and expand to international markets in 2023.
A regular Disney+ subscription costs $11.99/month in Canada. With this in mind, the ad-enabled tier could cost anywhere between $6-$10.
It’s likely Disney-owned Hulu’s success with introducing an ad-free tier played into the decision to launch a similar offering for Disney+. Hulu already offers a $6.99 USD/month (roughly $8.79/month CAD) ad-enabled plan, along with a $12.99/month (about $16.54/month CAD) regular plan. That is a 46 percent difference in price, and is sure to attract those that want to subscribe to the service only to watch a specific series or movie, and not the service’s whole catalogue.
“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.”
The company didn’t specify when in ‘late 2022’ the new tier will be released, and which countries constitute ‘international markets’ for the delayed 2023 release. MobileSyrup has reached out to Disney but hasn’t received a response confirming Canadian availability.
Disney’s goal is to reach 230 million to 260 million subscribers by the financial year 2024. As of Q1 2022, the company reported 129.8 million subscribers, up 11.7 million from Q4 2021.
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Source: Disney