Disney+ to Launch Ad-Supported Tier in US in 2022
We’re only a few months into 2022 and Disney+ is making some major changes—all in the span of a week, no less. First, the streaming platform announced it was launching parental controls on March 16 when its grislier Marvel slate of TV shows arrives. These shows include Daredevil, Jessica Jones, and The Punisher. And now, it’s set to add an ad-supported subscription tier. The new subscription option arrives in the US later in 2022. However, Disney+ plans to take it global in 2023.
In its press release, Disney didn’t share how much the new ad-supported tier will cost. But it notes the price is lower. Disney+ currently costs $7.99 per month or $80 for an annual subscription. The specific timing of release and the cost will likely be forthcoming in the next several months. In the press release, Kareem Daniel, Chairman, Disney Media and Entertainment Distribution, called the new tier a “win for everyone.” Specifically, he mentions the Disney+ ad-supported tier’s ability to help the platform reach a broader audience.
He said, “Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers. 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’s also part of the company’s ambitious growth plan. The press release also notes that Disney sees the new tier as a way to reach its next Disney+ subscriber benchmark. It’s a lofty 230-260 million subscribers by the end of the 2024 fiscal year. (The fiscal year ends on June 30, 2024.) Disney+ ended 2021 with 130 million subscribers worldwide. So they’re about halfway there.
It certainly makes sense that Disney+ would eventually launch an ad-supported tier. But does this mean we’re also in for a price increase on the ad-free front?
Disney currently owns and operates a trio of streaming platforms: Hulu, ESPN+, and Disney+. While the youngest in the mix, it certainly looks like the company sees Disney+ as their flagship platform.
Between the parental controls and this new tier, I can’t help but wonder if this is a giant push for Disney+ to become more central and self-sufficient. Or at least market it as a more specific kind of content hub. Of course, Disney+ didn’t need parental controls at launch as it boasted largely family-friendly content. But as license agreements with other streaming platforms expire, its own library, especially its titles with more mature content, are arriving in full force. At one point, it seemed like it’s grittier or more risqué material—or whatever the company deems so—would’ve shifted to Hulu. (That’s what happened with Love, Victor. Not to mention the curious cancellation of the Lizzie McGuire reboot over mature content.) But now everything can remain in the Disney+ ecosystem.
As Disney+ makes moves, we’ll be on the lookout for new pricing and an ad-supported Disney+ tier launch date.
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