Disney+ Announces Ad-Supported Tier for Late 2022

Launch date and pricing coming later

If you want to see what all the fuss is about regarding this baby Yoda and his armored friend, the price of entry is about to get a bit cheaper. 

Disney just announced that their massively popular Disney+ streaming service will receive a cheaper subscription tier later in the year, as reported by an official press release. However, this lower cost will be offset with advertisements. 

The Disney streaming signup page shown on a mobile phone.

Tech Daily / Unsplash

It's all part of the company's plans to balloon the service's adoption rate to 260 million subscribers by 2024. As of February, Disney+ boasted nearly 130 million paying subscribers, according to its recent quarterly earnings report.

"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. 

Disney owns several media companies, including Hulu, which pioneered the ad-supported streaming model all the way back in 2007. 

Other streaming services that offer ad-supported subscription tiers include Paramount+, Peacock, and, more recently, HBO Max. Of the major players, only Netflix, Prime Video, and Apple+ lack support for ads. 

Disney has not announced the actual price of this ad-supported tier, but it currently costs $8 per month, so one would assume slightly cheaper than that. They have also yet to announce an official launch date for this tier, saying it will be available by the end of the year.

Disney+ is known for hosting the entire stable of Marvel, Star Wars, and National Geographic properties. Forthcoming releases include Marvel’s Moon Knight and the Pixar animated feature film Turning Red. 

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