Disney+ Streaming Service Will Offer Cheaper Rate Option With Ads

The Disney+ streaming service will give its subscribers the option of paying lower rates. (Photo: Disney hotstar)

JAKARTA - The Walt Disney Co. will give Disney+ streaming service subscribers the option to spend lower rates in 2023. However, the new service will show ads.

"Expanding access to Disney+ to a wider audience at lower prices is a win for all of our consumers, advertisers and storytellers," said Disney Media and Entertainment Distribution Chief Executive Kareem Daniel.

Daniel said the option would bring more consumers to access Disney+ content. Advertisers will also get to reach a wider audience, and artists will be able to share their amazing work with more fans and their families.

By the time Disney+ launched in 2019, the developer didn't offer an ad-free service. In Indonesia today, Disney+ subscription packages are priced at IDR 39 thousand per month and IDR 199 thousand per year.

A source at the company said at the time that with Netflix's lower prices they wanted to focus on subscriber growth, knowing that the option to add ads would be available if growth slowed.

Subscriber growth for Disney+ slowed last year, especially in North America. While in the last quarter the company added more Disney+ subscribers than expected, around 130 million subscribers today.

Most of that growth has occurred in foreign markets at lower prices. New advertising and lower costs in the US could help spur new growth, while adding substantial revenue.

In a statement, Disney's head of advertising sales, Rita Ferro, said she would share more about the plans at the company's initial presentation in May.

The value of the ad is significant. Disney's other major streaming service, Hulu, offers an ad-supported price of $6.99 per month. From there, Disney can generate more advertising revenue from users as much as subscription revenue.