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Disney Plus to launch ad-supported subscription offering

Disney said it views the ad-supported offering as a building block to achieving its long-term target of 230-260 million Disney Plus subscribers by 2024

Disney has confirmed it will launch an AVoD version of Disney Plus in the United States later this year, and internationally in 2023.

The company said it views the ad-supported offering as a building block to achieving its long-term target of 230-260 million Disney Plus subscribers by 2024.

Disney Plus had reached 129.8 million paying subscribers globally by the end of 2021. The company has announced plans to increase spend on content for its media and entertainment distribution division this quarter (Q2 FY2022) by up to $1 billion versus the same period last year.

Other major streaming services such as Discovery Plus, HBO Max, and Paramount Plus offer subscribers ad-supported options, while yesterday ITV announced its new streaming service ITVX will be available as an AVoD.

In the US, a monthly subscription to the SVoD version Disney Plus costs around $8. Pricing details of the new AVoD offering have not been announced.

“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, Disney Media and Entertainment Distribution. “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.”