Disney Plus Confirms A New and Cheaper Tier Is Coming
It is no secret that we are currently in the middle of a cost-of-living crisis. Although it’s not something to be cheerful about, it’s necessary because so many face price increases in every aspect of their lives. People are trying to reduce costs by reassessing their priorities – streaming subscriptions don’t always make the cut.
Netflix experienced a record drop in subscribers, leading to a $50Billion drop in value. Disney+ is not looking to follow Netflix’s lead, so they have announced a new, cheaper subscription tier. However, there is one catch.
At this week’s quarterly earnings conference, Disney CEO Bob Chapek said that Disney+ would be receiving an ad-supported US tier by the end of this year. The update will also be available in international markets sometime in 2023.
Chapek stated, “Expanding Disney+ access at multiple price points is an win for advertisers and consumers.” He is correct. Many people will accept ads in return for a lower bill.
The price of the tier is unknown at this time. The current price of Disney+ is $7.99/PS7.99 so it will be lower than that. The exchange rate means that UK-based Disney+ subscribers pay more than their American counterparts. This could make the cheaper tier especially welcome.
Kareem Dan, chairman of Disney Media and Entertainment Distribution, also spoke about the announcement. He stated, “Expanding Disney+ access to a wider audience at a lower cost point is a win-win situation for everyone.” [..] Our amazing content will be available to more consumers. Advertisers and storytellers will have greater reach and be able to share their amazing work with a wider audience.
It is still unclear if Disney+’s subscriber count will change with the new tier being offered, as it is still several months away.