Disney+ is rolling out an advertisement-supported tier for their service. A lot of observers theorized that this could happen on the streaming platform. Disney+'s ad tier could end up being of lower cost as well in late 2022. International markets can look forward to this extension to the service in 2023. In this way, the parent company is taking some cues from strategies prevalent in their subsidiaries in ESPN and Hulu. This move was whispered about in various reports for a while and now it's about to be here. Check out what the company had to say down below.
"Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers," said Kareem Daniel, Chairman, 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+ and not just because there's a growing demand for more streaming inventory," said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. "Disney+ 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."
When prices increased last year, CEO Bob Chapek actually responded to the chatter online. The ad-supported tier should help ease the worries about constant price increases. As with most of the streaming landscape right now, the prices continue to rise. For consumers that still want to watch their favorite shows, this may be a middle ground as well.
"Of course, these were our first price increases since we launched, we're extremely pleased with how the market reacted to both -- in EMEIA, added star at a six brand title," Chapek explained. "We've seen an improvement in our churn rate. So we seem to be fairly resilient to those price increases, and as such, I think it makes us feel relatively bullish going forward that we still offer a tremendous price value relationship across the world for Disney+."
Will you be moving to Disney+'s ad-tier? Let us know down in the comments! You can check out current Disney+ subscription options right here.