Report: Disney is Considering an Ad-Supported Tier on Disney+

Disney+ could soon join Peacock and Paramount+ as the next streaming service to have an ad-supported tier. A new report from The Information says that Disney is considering a cheaper ad-supported plan in the U.S. to pull in more subscribers.

Right now, Disney+ has a single subscription plan that comes in at $7.99 per month or $79.99 per year. A tier with ads would cost less, potentially pulling in subscribers looking for a good deal. Disney has already seen how different pricing tiers can lead to subscriber growth. The company also owns Hulu which has several plans, including a base package with ads for $6.99 and an ad-free plan for $12.99. It would also bring in a massive new revenue stream for the streamer.

Adding an ad-supported tier could also give Disney+ some room to raise the price of its ad-free tier, putting its pricing in line with Hulu. Both moves would help Disney to offset some programming costs. Disney has shared its plans to spend $8 billion per year on content by 2024.

Along with the current content lineup from Disney, Pixar, Marvel, Star Wars, and National Geographic, subscribers will also be getting a few new titles that are a bit outside of the family-friendly shows and movies the service is known for. Marvel live-action series including “Daredevil,” “Jessica Jones,” “Luke Cage,” “Iron Fist,” “The Defenders,” “The Punisher,” and “Marvel’s Agents of S.H.I.E.L.D,” are all leaving Netflix and heading to Disney+. Disney is also upgrading its parental controls on March 16 with the addition of the new content.