The streaming service Disney+ will soon add an ad-supported subscription plan, a major shift away from the normally ad-free platform.

What’s happening: Disney+ announced Friday that it will introduce an ad-supported subscription offering by late 2022 in the United States.

  • The ad-supported subscription service is expected to launch internationally in 2023.
  • Disney+ did not announce pricing or launch date details.
  • “More details, including launch date and pricing, will be announced at a later date,” according to Disney+.
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Why this matters: Disney+ has been ad-free since it debuted in November 2019. Normally, an ad-free subscription plan for streaming services costs more than an ad-supported one. We could see Disney+ offering a more cost-effective subscription plan for those who are OK with seeing ads.

What they’re saying: “Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone — consumers, advertisers, and our storytellers,” said Kareem Daniel, chairman of Disney media and entertainment distribution, in a press release. “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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Current model: Disney+  currently costs $7.99 per month or $79.99 for an annual subscription.

  • Disney also offers a Hulu and ESPN+ bundle for $13.99 per month.
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