The Walt Disney Co. said it will launch a version of its Disney Plus streaming service with ads in the U.S. later this year.
Disney Plus with ads will expand internationally in 2023, the company said.
Disney has been investing in its advertising technology and already has the largest ad-supported streaming service with Hulu. The company will pitch advertisers on the new ad-supported Disney Plus at the upfront market in May.
Also: Light-Ad Tiers of Major Streaming Services Drew $438 Million in 4Q
The ad-supported version of Disney Plus will carry a lower price tag, increasing the number of subscribers it reaches. Other streaming services have found that they generate more revenue per subscriber with a light ad load than they do with subscription revenue alone.
The extra revenue will help pay for the content Disney plans to churn out to attract and keep subscribers.
A specific launch date and pricing information will be announced at a later date, the company said.
Also: Grown-Up Marvel Shows Coming to Disney Plus With New Parental Controls
“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 Kareem Daniel, chair, Disney Media and Entertainment Distribution. “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.”
“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 Rita Ferro, president, advertising, Disney Media and Entertainment Distribution. “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.”
Disney said it viewed the ad-supported offering as a building block in the Company’s path to achieving its long-term target of 230 million to 260 million Disney Plus subscribers by its 2024 fiscal year. ■
