Disney joins a growing number of media companies, including
AT&T’s WarnerMedia, Comcast, Discovery and Paramount Global, in offering ad
supported tiers of their streaming services to capture price-sensitive
customers.
“Expanding access to Disney+ to a broader audience at a
lower price point is a win for everyone – consumers, advertisers, and our
storytellers,” Kareem Daniel, chairman of Disney Media and Entertainment
Distribution, said in a statement. “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.”
Pricing was not disclosed.
Ad-supported services borrow from a model that has sustained
television for decades, with commercials subsidizing the cost of programming.
“There’s a load of people that will never pay for
television,” said Discovery CEO David Zaslav in a recent Discovery investor
call, “But they can go to and view this content and that’ll be advertiser
supported.”
Disney already offers ad-supported versions of its Hulu and
ESPN+ streaming services. © Reuters