Disney+ considering cheaper, ad-supported membership tier

Disney is mulling over the idea of launching a cheaper, ad-supported tier for its Disney+ service in the US.

It is said to be interested in following rival streaming services, such as Peacock and Paramount+, in offering an alternative to a full subscription in order to boost viewer numbers further.

With the world coming out of lockdowns and restrictions, and learning to live with Covid, subscriber growth is slowing for many video streaming services. Disney could see a cheaper tier as a way of reinvigorating interest in those who have so far abstained. Or to entice back former members.

The Information claims it was told about the prospective plan by a “person involved in the discussions”.

Although no actual details have been revealed, Disney+ currently costs $7.99 per month to subscribe in the States (or $79.99 for a year). Other services, such as Discovery+ and Paramount+, charge around $4.99 for ad-supported membership.

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Disney itself even offers an ad-supported plan for its Hulu service in the US. It charges $6.99 per month with advertising included. However, the usual ad-free monthly fee is almost twice that, at $12.99 per month, so unless it plans to significantly raise the usual Disney+ price in the coming year, any ad-supported tier is likely to be cheaper than on Hulu.