The company said the new ads tier will join the subscription option in the United States sometime later this year. The exact launch date and pricing will be "announced at a later time," Disney said, with an international expansion in 2023.
"Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone," Kareem Daniel, the chairman of Disney Media and Entertainment Distribution, said in a statement. "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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Disney said it sees the ad tier "as a building block" in the company's goal of reaching 230 million to 260 million long-term subscribers by the 2024 fiscal year.
As of January 1, Disney+ had nearly 130 million subscribers. It's one of the biggest competitors in the streaming market.
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ABC Owned TV Stations contributed to this report.
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