Disney+ to Add Ad-Supported Subscription Tier in Late 2022

Pricing will be announced at a later date

The Mandalorian

Disney+ is adding a new ad-supported subscription tier to its service as it expands its marketplace hold.

The streamer announced the news on Friday, noting it would launch in late 2022. Price and exact launch date will be announced later in the year.

The new tier will be offered alongside an option without ads, which has been the only subscription option since Disney+ launched in 2019.

“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” Kareem Daniel, chairman, Disney Media and Entertainment Distribution, said 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.”

The move to ad the ad-supported tier is part of Disney’s target of nabbing 230-260 million Disney+ subscribers by fiscal year 2024. The ad-supported version will roll out in the U.S. later this year, and expand internationally next year.

“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory,” Rita Ferro, president, Advertising, Disney Media and Entertainment Distribution said in a statement. “Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”

Recently, Disney+ announced its intention to expand its content offerings to include more mature content, a rollout that will coincide with the launch of new parental controls. This will begin later in March when the Marvel shows like “Daredevil” and “The Punisher” — which first premiered on Netflix and have TV-MA ratings — will be added to Disney+.