Disney Launches Ad-Supported Version Of Disney+

Photo by NICK AGRO/AFP via Getty Images

James Lynch Contributor
Font Size:

Disney has launched a new ad-supported subscription plan for its streaming service, Disney+, and raised prices for its ad-free plan by $3 per month, the company announced Thursday.

Disney+ offers users a huge library of Disney classics, content from Disney-owned franchises and an array of other original programming. The cost of the original, ad-free plan will increase from $7.99 to $10.99 per month, with the ad-supported Basic Plan starting off at $7.99 per month, the company said in a press release.

“Today’s launch marks a milestone moment for Disney+ and puts consumer choice at the forefront,” said Michael Paull, Disney’s president of direct to consumer.

“With these new ad-supported offerings, we’re able to deliver greater flexibility for consumers to enjoy the full breadth and depth of incredible storytelling from The Walt Disney Company,” Paull added.

Disney+ users can stream content from Disney, Pixar, Marvel, Star Wars, National Geographic and other entertainment franchises, depending on the market.

Current subscribers will receive a prompt to choose between Disney+’s Basic and Premium plans, either of which can be bundled with Disney-owned streaming services ESPN+ and Hulu. (RELATED: Adam Sandler Shocks Brendan Fraser With Details Of ‘Airheads’ Role He Nearly Lost Out On)

Advertisers will include blue chip brands in industries such as retail, financial services, apparel, technology, travel and more, according to the press release. There will be no political or alcohol ads, and companies will not be able to target users under 18, Axios reported.

In November, Disney brought back longtime CEO Bob Iger to serve for the next two years, replacing Iger’s own chosen successor, Bob Chapek. The company’s streaming division suffered losses of $1.47 billion last quarter, and its total revenue was $1 billion less than analysts projected, according to CNBC.

“Disney announced the launch of the ad-supported Disney+ in March, prior to any leadership changes,” a Disney spokesperson told the Daily Caller.

“At launch, advertising is run of site, no targeting, separated by audiences 18+ and 17 under. (As a reminder, there will be no advertising in kids mode, or in preschool content). When we do roll out targeted advertising next year, it will be to known users 18+. ” the spokesperson added.