In this photo illustration, the Disney + logo is visible on the screen of a smartphone.
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Disney announced a new ad-supported level on Friday for its Disney + streaming service, which will launch in the United States later this year.
Disney did not provide a launch date or price for the new level. The new level supported by advertising will be expanded internationally in 2023.
The company said in a press release that the new proposal will be a “building block” to achieve its goal of reaching 230 million to 260 million Disney + subscribers by 2024.
Adding a level of advertising support will allow Disney to increase average consumer revenue – an indicator that currently lags behind most competitors. Comcast CEO Brian Roberts said that in the last quarter, NBCUniversal’s Peacock had an ARPU of nearly $ 10 a month per user, driven primarily by advertising. The average monthly revenue for Disney + in the United States and Canada was $ 6.68 in the last quarter.
WarnerMedia’s HBO Max, Paramount Global’s Paramount + and Discovery’s Discovery + are among the streaming services that already offer ad-supported streaming options.
Disney’s majority-owned Hulu also now offers an ad-supported product for $ 6.99 per month, compared to the ad-free service, for $ 12.99 per month. Disney has streamlined backend technology to make it possible to sell advertising on all of its streaming products, according to someone familiar with the matter.
Disclosure: Comcast owns the parent company of CNBC NBCUniversal.
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