Disney Discusses Launching Ad-Supported Tier of Disney+ in U.S.

The Information reports, Disney is discussing launching a cheaper, ad-supported tier of its Disney+ streaming service in the U.S.

What’s Happening:

  • Disney seeks to hit its goal of profitability for its direct-to-consumer business in 2024, and the move could fire up slowing subscriber growth for the service.
  • Disney would be joining the majority of entertainment companies, including WarnerMedia, Discovery, NBCUniversal and Paramount Global, that have launched ad-supported tiers of their streaming services as they seek to grow in the increasingly competitive streaming market. The moves signal how the focus of video streaming has shifted away from ad-free services, like that pioneered by Netflix more than a decade ago, to a more traditional ad-supported television model.
  • Launch would make Netflix the only major streaming service without ads.
  • Discussions signal the importance of advertising in streaming.
  • Disney is making the move as U.S. subscriber growth slows.

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