A man looks at his phone as he walks past a screen advertising Walt Disney’s Disney+ streaming service in New York, U.S., November 12, 2019.
REUTERS/Brendan McDermid/File Photo
The Walt Disney Co Friday announced that it will offer a cheaper, ad-supported version of its Disney+ streaming service later this year as it seeks to hit its profit target by 2024.
Disney is joining 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 wider audience at a lower price is a win for everyone – consumers, advertisers and our storytellers,” Kareem Daniel, president of Disney Media and Entertainment Distribution, said in a statement.
Pricing was not disclosed.
Ad-supported services borrow from a model that has sustained television for decades, with advertisements subsidizing the cost of programming.
“There are a lot of people who will never pay for TV,” Discovery CEO David Zaslav said on a recent call to Discovery investors, “But they can go and see this content and it will be supported. by advertisers.
Disney already offers ad-supported versions of its Hulu and ESPN+ streaming services.