Disney+ To Introduce Ad Supported U.S. Version In Late 2022

deadline.com:

Disney said Friday consumer streaming service, Disney+ will introduce an ad-supported subscription in addition to its option without ads in the U.S.

starting in late 2022, with plans to expand internationally in 2023.It said it will announce more details, including launch date and pricing, at a later date.The 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, the company said.

The service was at 130 million by the end of 2021, but growth has been slowing. A dollar-a-month price hike kicked in for Disney+ kicked in about a year ago and likely has had been a short-term impediment to growth, as is often the case when price increases hit.“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.”“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,” said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. “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.