Lower priced Disney+ plan coming by end of 2022

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DIsney+ will add an advertising-supported tier to its streaming service in late 2022, the company announced March 4, 2022.

The company revealed little other information about its plans, including cost or launch date.

For other streamers, the difference between ad-free plans and ones with limited ads is typically around $5 a month, as is the case of Peacock and Paramount+ as of March 2022 (Paramount+’s lower price tier also does not include access to the local CBS affiliate feed).

Marketers appear to still be warming up to the idea of buying ad time on streamers, as many breaks are still filled with promos for other shows on the network or sister companies with a limited selection of actual commercials, often from many of the same industries and companies already known for spending big on TV ads, such as health and beauty, cars and household products.

Ad growth on these platforms has been growing steadily, but still hasn’t been able to come close to the spending on linear TV, even as those services shed subscribers.

Many streamers offer the ability to target ads based on demographic information, which could be appealing to some advertisers but can also raise privacy concerns.