Since Disney launched their flagship streaming service in November 2019, Disney+ has operated as a completely ad-free experience for subscribers. However, according to a report from The Information, that could be changing.
According to the report, the House of Mouse is considering launching a less expensive, ad-supported option in order to attract consumers who have been hesitant about adding another service with a $7.99 monthly fee. After making a major investment in the platform, Disney is hoping to make the project profitable by 2024, and this move would be aimed at continuing the service’s growth following the initial push, and at limiting subscriber churn. The report did not indicate what the lower-priced tier would cost or when it could be coming to consumers.
Disney+’s streaming sister Hulu already has an ad-supported tier, which currently runs $6.99 per month, $6 less than the $12.99 ad-free price tag. If Disney+ makes this move, it would be joining Hulu, HBO Max, Paramount+, Discovery+, and an increasing number of streamers to offer multiple price points to customers, including some supported by ads.
Netflix, the world’s leading streaming service has shown no signs of adding an ad-supported option, but both Netflix and Disney — and truly all services — are running into similar issues on the streaming front; new subscriber numbers are slowing down and the financial investment needed to continually add content to platforms is going up.
Disney is expected to spend between $8 and $9 billion on Disney+ by 2024, leading the company to get creative in its acquisition efforts. It has been promoting the Disney Bundle, which includes Hulu and ESPN+, for over a year and recently has been requiring customers who subscribe to Hulu Live TV to also add the other two bundle options at a discounted rate.
It was also reported this week that soon-to-be Discovery-owned CNN+ was planning on adding an ad-supported at some point following its spring launch like its corporate siblings HBO Max and Discovery+.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”