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Disney+ adds a cheaper ad-supported subscription tier

anyway Disney (dis) We shared that the new ad tier will join the subscription option in the US later this year, details are few. The company said the exact launch date and price will be announced at a later time, with an international expansion in 2023.

“Expanding access to Disney+ to a wider audience at a lower price point is a win-win,” Karim Daniel, president of Disney Media and Entertainment Destination, said in a statement. “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 great work with more fans and families.”

Disney said it sees the ad layer as a “brick” in the company’s goal of reaching 230 million to 260 million subscribers over the long term by fiscal year 2024.

As of January 1, Disney+ has Almost 130 million subscribers. It’s one of the biggest competitors in the streaming market, and now it’s joining services like Paramount+, NBC’s Peacock, and WarnerMedia’s HBO Max in offering a cheaper, ad-supported option. (HBO Max, like CNN, is a unit of WarnerMedia.)

Netflix (NFLX) – The broadcast leader with nearly 222 million subscribers – he’s been candid about it How do you not want to add category ads.

But at Disney, a cheaper level could help the company’s most important assets grow faster and bring in more money to help offset higher content costs.