The Information reports that Disney is mulling the launch of a cheaper, ad-supported version of its Disney+ streaming service in the United States. Disney is currently priced at $7.99 per month or $79.99 per year.
Adding a more affordable subscription tier could boost subscriber growth, which the report says is beginning to slow. At its two-year anniversary mark (November 2021), Disney+ had more than 118 million subscribers. It now boasts more than 130 million subscribers. Disney is aiming for 230 to 260 million paid subscribers by 2024.
If it adds an ad-supported tier of service, Disney would be following the lead of numerous other streaming services that have ad-supported tiers, including WarnerMedia, and Paramount.
Paramount+ currently offers an ad-supported tier at $4.99 per month, so the Disney+ ad-supported subscription tier could likely be priced somewhere around there. Disney plans to spend at least $8 billion per year on Disney+ by 2024.