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An ad-supported version of Disney+ is coming to the U.S. later this year, the media giant said Friday.
Walt Disney Co.
DIS,
did not say how much the new service will cost or when it will be available, but it will be priced less than the ad-free version, which goes for $7.99 a month in the U.S.
Disney called the ad-supported version of Disney+ a “building block” for the company’s goal of reaching 230 million to 260 million subscribers worldwide by the end of its 2024 fiscal year. Through 2021, the 2-year-old Disney+ has accumulated 129.8 million paid customers worldwide, with the addition of 11.8 million in its last quarter.
“Expanding access to Disney Plus to a broader audience at a lower price point is a win for everyone — consumers, advertisers, and our storytellers,” Kareem Daniel, chairman of Disney Media and Entertainment Distribution, said in a statement Friday. “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’s streaming rivals Netflix Inc.
NFLX,
and Amazon.com Inc.
AMZN,
do not offer ad-supported options, with Netflix showing little interest in such a format. AT&T Inc.’s
T,
WarnerMedia, soon to merge with Discovery, added an ad version of HBO Max in June.
Paramount Global’s
PARA,
Paramount+ and Comcast Corp.’s
CMCSA,
Peacock have ad-free and ad-supported plans.
Disney shares closed down 3% in trading Friday, and have slipped 9% so far this year.
