Even though Disney+ is (currently) one of the more affordable streaming services in the United States at $7.99 per month, the company is looking to offer a more affordable option. According to a report from The Information, Disney is considering an ad-supported tier of its popular Disney+ streaming service…
Disney+…but with ads?
The report explains that this comes as Disney works towards its goal of making its direct-to-consumer business profitable by 2024. While Disney+ already has well over 100 million worldwide subscribers, launching an ad-supported tier in the United States could further increase that number.
As of right now, there are no details on how much the ad-supported version of Disney+ would cost per month in the United States. The report from The Information notes that other services such as Paramount+, Peacock, and Hulu all offer ad-supported tiers at lower price points:
It’s also not out of the realm of possibility that Disney+ increases the price of the ad-free tier around the same time as it launches a more affordable option with ads. The price of Disney+ started at $6.99 per month at launch and increased to $7.99 per month last year. Disney CEO Bob Chapek has hinted that another price increase could be on the way.
Disney’s service now costs $8 a month. Rivals such as Discovery+ and Paramount+ offer tiers with ads that each cost $4.99. Disney’s Hulu service has an ad-supported tier, which costs only $6.99 per month. By launching an ad-supported tier for Disney+, the company could attract a wider group of subscribers. That would help it increase revenue to offset fast-rising programming costs for its service.
As it stands today, Netflix and Apple TV+ are the other major holdouts without an ad-supported tier available. Apple TV+ is comparatively cheap at just $4.99 per month, and while Netflix is more expensive, it has resisted the idea of ever offering a cheaper tier of service with ads.
Would you be interested in a version of Disney+ that was cheaper but included advertisements? Let us know down in the comments.
