How Disney+’s Ad Tier Can Pull the Company Out of a Fiscal Slump | Analysis

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The new AVOD offering rolled out in the U.S. on Thursday, with plans to expand internationally in 2023

disney+ ad tier
Analysts at MoffettNathanson estimated that Disney+ could potentially generate $1.8 billion in revenue from the ad-supported tier by 2025. (Disney, Getty Images)

The Walt Disney Company has officially debuted ad-supported streaming with the rollout of Disney+’s new subscription tier in the United States on Thursday. And experts told TheWrap that the new option should help the entertainment giant pull out of a fiscal slump that’s seen its shares down more than 40% from the start of the year and its direct-to-consumer losses total $4 billion.

In addition to the $7.99 monthly standalone ad-supported offering, consumers will have the option to bundle the ad-supported tier with Hulu with ads for $9.99 per month, Hulu and ESPN+ with ads for $12.99 per month and Hulu with ads and Live TV and ESPN+ for $69.99

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