Ad-Supported Streaming Service Options

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Disney+ Will Launch an Ad-Supported Subscription Tier

— March 7, 2022 — Business
Disney+ has announced that it will be launching an ad-supported subscription tier in a bid to help expand access to the streaming service and more. The announcement confirmed rumors as of late that the company would launch an ad-supported option for subscribers, but didn't come with information related to pricing. The subscription tier will be launched in late-2022 and will offer subscribers with access to the service for a price point below the present cost of $7.99, but of course with advertisements that play periodically.

Chairman, Disney Media, and Entertainment Distribution Kareem Daniel commented on the new ad-supported subscription tier for Disney+ saying, "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.”
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Trend Themes

  1. Ad-supported Streaming Services — The trend of offering ad-supported streaming services is growing, creating opportunities for companies to expand their audience by offering lower-priced subscription tiers with periodic advertisements.
  2. Broadening Access to Streaming Services — Companies like Disney+ are exploring ways to expand access to their streaming services by offering lower-priced tiers that are ad-supported, opening up new revenue streams for themselves and value propositions for customers.
  3. Advertising Opportunities in Streaming Services — As more companies offer ad-supported streaming services, there are significant opportunities for advertisers to reach a wider audience and for storytellers to share their work with more families and fans.

Industry Implications

  1. Streaming Services — Streaming services across a variety of industries, including entertainment and sports, are exploring ad-supported subscription tiers as a means of broadening access to their content and expanding revenue streams.
  2. Advertising — The growth of ad-supported streaming services presents opportunities for advertisers to reach a wider audience with periodic advertising, with the potential to develop new content formats and approaches that resonate with consumers.
  3. Media and Entertainment — Companies in the media and entertainment industries, such as Disney+ and others, are exploring ways of broadening access to their content and expanding their revenue streams through ad-supported subscription tiers that offer lower-priced access to their content.
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