Disney+ Announces Ad-Supported Plan Will Launch Late 2022

Disney+ has been the fastest-growing streaming service since its launch at the end of 2019, and the company has announced its next strategy to drive more sign-ups.

An ad-supported plan will launch in late 2022 in the U.S. before rolling out internationally in 2023.

The service has yet to confirm the specifics of the offering, including the price, but it's expected to be a couple of dollars less than the $7.99 per month plan currently on offer.

Competitors Paramount+, Peacock, HBO Max, and Hulu all have cheaper ad-supported plans, with Netflix being the outlier in that it doesn't currently have an ad-supported plan.

The news comes at a time when streaming services are starting to plateau. Disney announced earlier this year that it had reached 129.8 million subscribers, and a lower costing offering might be the best way to close the gap with Netflix.

Netflix, which has been around for longer than its streaming competitors, stands tall at over 221 million subscribers.

“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.”

Disney+ this week announced its intention to branch out into MA fare, with the addition of the onetime Netflix series The Defenders, Daredevil, Luke Cage, Iron Fist, Jessica Jones, and The Punisher.

That update involves a parental controls update that will allow the more mature content on the profiles on the service.

Disney+ already introduced the parental controls in its international markets last year when it launched Star, a service within the service that includes content created for Hulu in the U.S.

Disney+ making the parental controls in the U.S. has also led to questions about the future of Hulu, which many expected would fold into Disney at some point when NBCUniversal's time as a part of the streamer concluded.

What are your thoughts on the lower price plan?

Do you think it will entice more subscribers?

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