By Sam Boughedda
Investing.com -- Walt Disney (NYSE:DIS) announced Friday that its streaming service, Disney+, will introduce an ad-supported subscription in addition to its option without ads, starting in the U.S. in late 2022.
Disney shares fell 3.8% on Friday.
The company, which has plans to expand the subscription plan internationally in 2023, said taking Disney+ to a broader audience at a lower price "is a win for everyone."
“More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families," said Kareem Daniel, Chairman of Disney Media and Entertainment Distribution.
Disney didn't confirm how much cheaper the new advertisement-supported plan will be compared to the standard, ad-free plan, which is $7.99 per month or $79.99 per year.
“Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic," said Rita Ferro (NYSE:FOE), president of advertising, Disney Media and Entertainment Distribution.
The company added that the ad-supported offering is considered a "building block" in its path to achieving its long-term target of 230 million to 260 million Disney+ subscribers by FY24.