The Disney+ streaming service will launch in the US later this year, with a new ad-supported tier.
Disney didn't give a launch date or price for the new tier. The ad-supported tier will expand internationally.
The company said in a press release that the new offering would be a building block in achieving its goal of reaching 230 million to 260 million Disney+ subscribers.
Disney will be able to boost average revenue per user by adding an advertising-support tier. Brian Roberts said last quarter that NBCUniversal's Peacock had an average revenue per user of $10 per month. The revenue per user per month for Disney+ in the US and Canada was $6.68 last quarter.
Some of the streaming services that offer advertising-supported streaming options are WarnerMedia's HBO Max, Paramount Global's Paramount+ and Discovery's Discovery+.
The ad-supported product for $6.99 per month is offered by the majority owned by Disney. A person familiar with the matter says Disney is streamlining its technology to make it easier to sell advertising on its streaming products.
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