Disney+ To Add A Cheaper, Ad-Supported Tier In Late 2022

The House of Mouse is switching things up on streaming. Today, Disney announced that a new, cheaper ad-supported tier for its Disney+ streaming service will launch in the US in late 2022. Exact pricing for this tier has not been announced.

Disney+ currently costs $8 a month, or $7.99 as part of the Disney Bundle (which also includes ESPN+ and Hulu). The company’s other major streaming service, Hulu, has both an ad-supported tier ($6.99 per month) and an ad-free tier ($12.99 per month).

Given that Disney+ has a substantially larger number of subscribers (The Hollywood Reporter reports that it has about 130 million to Hulu’s 45 million), an ad-supported tier offers the streamer a new opportunity to attract subscribers and revenue.

“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” Disney Media and Entertainment Distribution chairman Kareem Daniel said in a statement to Decider. “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.”

In another statement, Disney Media and Entertainment Distribution advertising president Rita Ferro added: “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 opportunity.”

Ferro noted that Disney+ with advertising will allow marketers “the most premium environment” in streaming with “beloved” brands like Disney, Pixar, Star Wars, Marvel, and National Geographic.