Streaming platform Disney+ will have an advertising supported subscription offering by the end of 2022.
The service will first be launched in the US and then moved to international markets. An option without ads will be available.
“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone - consumers, advertisers, and our storytellers,” says 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.”
The ad-supported offering is viewed as a building block in the company’s path to achieving its long-term target of 230-260 million Disney+ subscribers by the 2024 financial year.
More details, including launch date and pricing, will be announced later.
In the year to December Disney+ reported 129.8 million paying subscribers.
Competitors Netflix and Amazon Prime don't offer an advertising supported version of their streaming platforms.
Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution: “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.
“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."
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