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Disney+ to introduce ad-supported plan as market shuns SVOD

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By Hannah Bowler | Journalist

March 7, 2022 | 3 min read

Disney is to introduce an ad-supported plan to its streaming service Disney+ later this year in a bid to reach 260 million subscribers by 2024.

Disney+ launches House of Disney+ TV ad spot to attract EMEA subscribers

Disney+ gets ad-supported tier

Set to roll out in the US in late 2022 followed by the international markets in 2023, Disney will provide consumers with service cheaper than its $7.99 ad-free service. “Expanding access to Disney Plus to a broader audience at a lower price point is a win for everyone – consumers, advertisers and our storytellers,” said Kareem Daniel, chairman of Disney Media and Entertainment Distribution.

The move reflects the growing trend toward ad-supported video on demand (AVOD) as consumers tire of expensive plans and service stacking. Recent Comcast research revealed 80% of consumers prefer an ad-supported service over a higher cost ad-free SVOD service.

The news comes as ITV’s share plummeted by 30% following its announcement of its SVOD service ITVX, signaling a loss of confidence in the subscription model.

Disney+ will follow the likes of Peacock, Paramount+ and Discovery+, which all have ad-free tiers.

“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,” Daniel said.

Disney+ currently costs $7.99 per month and since its 2020 launch has netted 130 million global subscribers.

“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 inventory,” added Rita Ferro, president, advertising, Disney Media and Entertainment Distribution.

Disney’s ad-supported announcement follows today’s news that Disney Advertising Sales is partnering with Horizon Media to help it expand the measurement capabilities of its data clean room.

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