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Disney+ Launching Ad-Supported Tier

Disney+ has announced it will launch an “ad-supported subscription” tier to its streaming service.

The service will be available in the US later this year, and will roll out internationally in 2023.

Disney promises that, like its own Hulu and ESPN brands, the advertising will be “contextually relevant to viewers” and notes that “Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+”, which is cold comfort for viewers.

“Expanding access to Disney+ 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.

“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.”

It will be interesting to see what price point Disney lands upon for this tier, given the service currently cost A$11.99 a month in Australia.

Price probably isn’t the biggest factor for Disney, who admits an “ad-supported offering is viewed as a building block in the Company’s path to achieving its long-term target of 230-260 million Disney+ subscribers by FY24.”

 



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