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The Walt Disney Co DIS-N 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 T-N, Comcast CCZ-N, Discovery and Paramount Global PARA-Q, 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.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 15/04/24 6:40pm EDT.

SymbolName% changeLast
DIS-N
Walt Disney Company
+0.16%112.61
T-N
AT&T Inc
+1.1%16.51
CCZ-N
Comcast Corp
-0.99%55.15
PARA-Q
Paramount Global Cl B
+13.4%12.44

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