Disney+ announced on Friday that it will be introducing a cheaper, ad-supported tier to its current subscription model sometime later this year.
While the House of Mouse’s streaming platform has yet to reveal a price or specific roll-out date, the new tier would be cheaper than the current price point for the ad-free subscription, which stands at $7.99 per month or $80 per year.
“Expanding access to Disney Plus to a broader audience at a lower price point is a win for everyone — consumers, advertisers, and our storytellers,” said Disney Media and Entertainment Distribution chairman Kareem Daniel in a statement to Variety. “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.”
In making the announcement, Disney called the move a “building block” toward reaching its goal of 230 to 260 million Disney+ subscribers by the end of the 2024 fiscal year, five years after the streaming platform’s grand unveiling in November of 2019. The site remains the exclusive streaming home of popular content like Disney/Pixar’s Encanto, nearly every movie and TV show in the Marvel Cinematic Universe, and the galaxy far, far away that is all things Star Wars.
“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney Plus, and not just because there’s a growing demand for more streaming inventory,” added Disney Media and Entertainment Distribution president of advertising Rita Perro in her own statement. “Disney Plus 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.”
This is just the latest tweak to Disney+’s model. Earlier this week, the platform announced the introduction of new parental controls, to coincide with its acquisition of Marvel’s Netflix series.