Disney Plus is adding a cheaper ad-supported subscription tier later this year

Image: Disney

The company announced today that Disney Plus will be adding a cheaper tier sometime in the late 20th century. The tier will come to the US first.

Disney hasn't said how much cheaper the ad-supported version of Disney Plus will be compared to the standard, ad-free plan.

Adding cheaper options with ads is becoming more popular. The $10 per month plan that was introduced last year is limited to HD content and includes commercials, but it is $5 cheaper than the ad-free plan. Peacock has a different approach, with a smaller selection of content with ads, a $4.99 per month tier that offers the full library with ads, and a $9.99 per month level that allows customers to download titles to watch offline.

The ad-free version of Hulu costs almost twice as much as the ad-supported version, which costs $6.99 per month.

Adding a cheaper, ad-supported tier for Disney Plus could help the company further expand its subscriber base, something that is becoming a priority for the future of Disney's media empire. Disney's ambitious goals of reaching 230 to 260 million Disney Plus subscribers by 2024 has slowed subscriber growth in recent months.