Disney Plus adds an ad-supported subscription level at the end of 2022

Disney Plus will add a cheaper, ad-supported subscription level sometime in late 2022, the company said today. The level will come first to the United States before expanding internationally in 2023.

Most importantly, Disney did not say how much cheaper the ad-supported version of Disney Plus will be compared to the standard ad-free plan (which currently costs $ 7.99 per month or $ 79.99 per year) or when exactly launches a new level of service.

Adding cheaper options with ads is becoming increasingly popular among subscription services. HBO Max last year unveiled a $ 10-a-month plan that shaved $ 5 off the ad-free price, although in addition to adding ads, the cheaper plan is also limited to HD content (not 4K). Peacock takes a more diverse approach: a smaller selection of ad content is available completely free of charge, with a level of $ 4.99 per month, which offers a complete library of ads, along with a level of $ 9.99 per month, which allows customers Download titles to watch offline and get rid of (most, but not all) ads.

Even Hulu – which Disney now owns and operates – offers ad-free and ad-supported versions: Hulu with ads costs $ 6.99 per month (or $ 69.99 per year), while the non-ad version of Hulu costs almost twice as much. from $ 12.99 per month.

Adding a cheaper, ad-supported level to Disney Plus could help the company further expand its subscriber base, something that is increasingly becoming a priority for the future of Disney’s media empire. Given that subscriber growth has slowed in recent months, along with Disney’s ambitious target of reaching 230 to 260 million Disney Plus subscribers by 2024 (the service currently has 129.8 million, to Disney’s revenue for the first quarter of 2022), ad-supported price level may help attract another big wave of new customers in the coming months.