Cheaper Disney Plus ad-supported subscription plan due this year
The tail end of 2021 saw a minor milestone in the so-called “streaming wars”: For the first time, Disney’s blockbuster-ready Disney Plus service topped Netflix in new subscribers, a numbers game that ultimately sent Netflix’s stock price plummeting. In 2022 each streamer plans how to keep quality high while still making sense of an enormous content project. This meant that Netflix had to increase its baseline pricing. For Disney, it means adding new versions of the service for people who haven’t smashed that subscribe button.
On Friday, Disney announced that, sometime in late 2022, Disney Plus will introduce an ad-supported subscription tier, similar to Hulu’s various plans. As well as the Hulu Plus and ESPN Plus bundles, there will still be a no-ad option. Although no pricing information was provided, this plan is less costly than the $7.99/month current model that has no ads.
“Expanding access to Disney Plus to a broader audience at a lower price point is a win for everyone — consumers, advertisers, and our storytellers,” said Kareem Daniel, chairman, Disney media and entertainment distribution, in a statement. “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 announced a record 129.8m subscribers to Disney Plus, which includes 45.9million subscribers to its international Disney Plus Hotstar services. By 2024, the company hopes to have 230-265 million subscribers. That means a steady pipeline of Star Wars, Marvel, and Disney-adjacent shows — of which there are many in the works — and new ways to lure in customers.
Disney expects to soon reveal pricing and a date for official launch. An international rollout of the ad-supported service is likely to follow after it’s launched in the U.S. and Canada.
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