In a first for Disney’s flagship direct-to-consumer streaming service, Disney+ will launch an ad-supported subscription plan later this year.
the ad-supported Disney+ plan will be introduced in the United States in late 2022, with plans to expand internationally in 2023, the media conglomerate announced Friday.
“Expanding access to Disney+ to a wider audience at a lower price is a win for everyone – consumers, advertisers and our storytellers,” Kareem Daniel, president of Disney Media and Entertainment Distribution, said in a statement. declaration by e-mail to iPhone in Canada.
“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 amazing work with more fans and families,” added Daniel.
The company said in a press release that the new offering will be “a building block” in achieving its goal of reaching 230 million to 260 million Disney+ subscribers by 2024.
Adding a tier of advertising support will allow Disney to increase average revenue per user – a metric that currently lags most rivals. Comcast CEO Brian Roberts said NBCUniversal’s Peacock last quarter had an ARPU of nearly $10 per month per user, driven primarily by advertising. The average revenue per user per month for Disney+ in the US and Canada was $6.68 last quarter.
“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 of advertising at Disney Media and Entertainment Distribution.
“Disney+ with advertising will provide marketers with the most premium streaming environment with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I look forward to sharing more with advertisers in ‘Upfront.’
Meanwhile, HBO Max, Hulu, Paramount+, and even Peacock are offering customers a cheaper ad-supported plan. But an ad-supported plan isn’t the only thing Disney is considering, as the company has experimented with plans tailored to specific markets like India.
Disney says more details, including launch date and pricing, will be shared “at a later date.”