Report: Disney Considering Ad-Supported Tier of Disney+
While Disney+ has a base price of $8/month or $80/year, the company is reportedly looking to add a new tier that would be cheaper and include ads, similar to what other streamers do like Hulu and Peacock.
According to The Information, the house of mouse is seeking to hit its goal of profitability for its direct-to-consumer business in 2024, and the move could fire up slowing subscriber growth for the service. The streaming service has enjoyed massive growth since its launch, accumulating 100 million subscribers in the 16 months after its November 2019 debut, surpassing their own projections by the millions.
During the quarter ending January 1, Disney+ said its subscriber number had hit 130 million, up 11.9 million from the prior quarter. An ad-supported option could help the service increase revenue by attracting a wider group of subscribers. The company has said multiple times previously that streaming will be a focal point moving forward, with billions of dollars being put into its new and original content.
The company is no stranger to ad-supported tiers. The Disney-owned Hulu has its own ad supported tier that costs $6.99 a month.
A cheaper tier will definitely drive new subscribers. Disney+ is ramping up content in 2022 with massive IP and original movies and shows including Moon Knight, Turning Red, Obi-Wan Kenobi, Disenchanted, Hocus Pocus 2, Andor, She-Hulk, Ms. Marvel, The Mandalorian, Chip N’Dale: Rescue Rangers, amongst many others in various stages of development.