Disney+ announces new, CHEAPER tier – but there's a catch

DISNEY+ has announced that it will launch its cheapest plan yet later this year – but there's a catch.

The streaming service said Friday that subscribers to the new payment tier will have to watch adverts as part of their viewing experience.

Those could come in the form of pre-roll ads similar to those on YouTube or commercials that run midway through shows and movies.

Disney did not specify the new tier's price or launch date.

It will cost less than the platform's current cheapest plan, which charges customers £8/$8 a month.

In a press release, Disney said that it would first roll out the ad-supported tier in the U.S. in late 2022.

The company has plans to expand internationally next year.

Adding a cheaper option is a way for Disney to entice more people to try out its popular streaming platform.

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The company said the new tier is a “building block” for its target of reaching 230 million subscribers worldwide by mid-2024.

At the end of 2021, Disney+ had 130million paying customers.

Launched in 2019, the service has proved hugely popular thanks to its stellar lineup of shows and movies.

Subscribers get exclusive access to content from the Star Wars and Marvel franchises, as well as the entire Pixar and Disney catalogues.

Rival platforms Netflix and Amazon Prime do not have cheaper, ad-supported tiers available.

However, the launch of Disney's new plan may force a change of heart down the line.

"Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” said Disney's Kareem Daniel.

"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."

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