Disney+ has announced that it will be launching an ad-supported subscription tier in a bid to help expand access to the streaming service and more. The announcement confirmed rumors as of late that the company would launch an ad-supported option for subscribers, but didn't come with information related to pricing. The subscription tier will be launched in late-2022 and will offer subscribers with access to the service for a price point below the present cost of $7.99, but of course with advertisements that play periodically.
Chairman, Disney Media, and Entertainment Distribution Kareem Daniel commented on the new ad-supported subscription tier for Disney+ saying, "Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers. 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.”
Key Themes Behind This Trend
- Ad-supported Streaming Services
- The trend of offering ad-supported streaming services is growing, creating opportunities for companies to expand their audience by offering lower-priced subscription tiers with periodic advertisements.
- Broadening Access to Streaming Services
- Companies like Disney+ are exploring ways to expand access to their streaming services by offering lower-priced tiers that are ad-supported, opening up new revenue streams for themselves and value propositions for customers.
- Advertising Opportunities in Streaming Services
- As more companies offer ad-supported streaming services, there are significant opportunities for advertisers to reach a wider audience and for storytellers to share their work with more families and fans.
Where This Applies
- Streaming Services
- Streaming services across a variety of industries, including entertainment and sports, are exploring ad-supported subscription tiers as a means of broadening access to their content and expanding revenue streams.
- Advertising
- The growth of ad-supported streaming services presents opportunities for advertisers to reach a wider audience with periodic advertising, with the potential to develop new content formats and approaches that resonate with consumers.
- Media and Entertainment
- Companies in the media and entertainment industries, such as Disney+ and others, are exploring ways of broadening access to their content and expanding their revenue streams through ad-supported subscription tiers that offer lower-priced access to their content.
