The Information reports that Disney is considering a cheaper, ad-supported version of Disney+.
The Information says that subscriber growth has started to slow and that a more affordable subscription tier could boost it. Disney had more than 118 million subscribers in November, at the two year mark after the service launched, and it is now over 130 million subscribers. Disney expects to have more than 200 million subscribers by the end of the decade.
Discovery, NBCUniversal, WarnerMedia, and Paramount are some of the entertainment companies that have launched ad-supported subscription tiers. An ad-based tier would be cheaper than Disney+'s current price of $79.99 per year.
Disney could potentially do something similar to Discovery+ and Paramount+, which offer ad-supported tiers priced at $4.99. Disney plans to spend at least $8 billion per year on Disney+ by 2024, and the company has so far been adding high-profile new content on a regular basis.
If Disney+ offers an ad-supported tier, it would make Apple TV+ and Netflix the only services not to offer a cheaper streaming option. Apple TV is priced competitively even with ad-based services at $4.99 per month, but it does not have the content that other streaming services do.
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