Disney+ is preparing to introduce a new ad-supported tier before the end of 2022. The streaming service, which presents a collection of titles from the Disney and 20th Century film libraries along with National Geographic, Pixar, Marvel, and Star Wars, debuted in November 2019. It quickly became one of the hottest new streaming services, outpacing peers like HBO Max and Paramount+ and generating numbers that put it in competition with some of the biggest platforms. In fact, Disney+ may beat out Netflix for total subscribers by 2026.
Although the service experienced some delays in getting their original content off the ground, especially at the beginning of the pandemic, they have expanded their brand considerably in 2021 and early 2022. In the Star Wars section, The Book of Boba Fett and the first two seasons of The Mandalorian have driven big numbers, and there are at least a half dozen more shows in development from that universe. Among their best-performing shows are the ones that take place in the Marvel Cinematic Universe, from the critically acclaimed WandaVision to the holiday hit Hawkeye. Their upcoming Oscar Isaac series Moon Knight will kick off the platform's first new solo character, and initial buzz is looking extremely good.
Now, Disney+ has announced they will be introducing an ad-supported tier in the U.S. later in 2022. Although they haven't announced a specific pricing scheme or launch date, the new tier is expected to be cheaper than the current ad-free tier. This move is part of the streaming service's push to reach 230-260 million subscribers.
Disney+ is prioritizing original content in their upcoming slate, even outside of their two major brands. The new Pixar movie Turning Red, in which a young girl discovers that she turns into a red panda when she gets upset, will be streaming exclusively on the platform without going to theaters. Additionally, Disney will be resurrecting many classic IPs including a remake of Cheaper by the Dozen starring Neil Patrick Harris and Gabrielle Union, and the blended live-action and animated Chip 'n Dale: Rescue Rangers.
This move from Disney+ may indeed pull in more subscribers who are scared off by the price tag. However, it may make many of their current subscribers more skittish. Ad-based streaming platforms are subject to many complaints because many audience members expect something that they pay for to be inherently ad-free, which is a frequent social media complaint about Hulu and other similar streamers. Likewise, the differences in timing between the ad-free and ad-supported tiers may throw a wrench into their Watch Party program, causing issues for people on different tiers who want to watch shows or films together. Hopefully, Disney+ can work out these kinks before they launch, but it certainly remains to be seen if this move will indeed be enticing to any new subscribers or not.
Source: Disney+