Disney+ will follow Netflix with new CHEAP plan – but there's a catch

DISNEY+ has shared details about its cheaper, ad-supported plan ahead of its launch later this year.

Subscribers to the new payment tier will have to watch up to four minutes of adverts an hour as part of their viewing experience.

It comes after bitter rival Netflix announced similar plans as part of a push to lure new subscribers.

According to the Wall Street Journal, Disney officials said that they will not run commercials during content aimed at preschoolers.

"We’re never going to collect data on individual kids to target them," the company's Rita Ferro told the publication.

Ads for alcohol and politics will be banned in a bid to keep the platform family-friendly.

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Speaking to TechCrunch, Disney confirmed the plans, adding that they will be in effect from the new tier's launch.

The planned four minutes of ads per hour would mean that viewers spend less time watching commercials than users of rival platforms.

Peacock's ad-supported service shows about five minutes of ads per hour, while Hulu's version shows twice as many as Disney+ will.

The popular streaming app announced the new tier in March.

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It's part of a wider move by the industry's big players to lure more subscribers as competition ramps up.

Disney did not specify the new tier's price or launch date.

It will cost less than the platform's current cheapest plan, which charges customers £8/$8 a month.

In a press release, Disney said that it would first roll out the ad-supported tier in the U.S. in late 2022.

The company has plans to expand internationally next year.

The company said the new tier is a “building block” for its target of reaching 230 million subscribers worldwide by mid-2024.

At the end of 2021, Disney+ had 130million paying customers.

Launched in 2019, the service has proved hugely popular thanks to its stellar lineup of shows and movies.

Subscribers get exclusive access to content from the Star Wars and Marvel franchises, as well as the entire Pixar and Disney catalogues.

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Rival platforms Netflix and Amazon Prime do not have cheaper, ad-supported tiers available.

A leaked Netflix memo has hinted, however, that one will be available as soon as October.

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