(Reuters) -The Walt Disney Co Friday said it will offer a cheaper, ad-supported version of its Disney+ streaming service later this year as it seeks to reach its goal of profitability by 2024.
Disney joins 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 broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” Kareem Daniel, chairman 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 commercials subsidizing the cost of programming.
“There’s a load of people that will never pay for television,” said Discovery CEO David Zaslav in a recent Discovery investor call, “But they can go to and view this content and that’ll be advertiser supported.”
Disney already offers ad-supported versions of its Hulu and ESPN+ streaming services.
(Reporting by Dawn Chmielewski; Editing by Kirsten Donovan)