Disney Plus is to offer a cheaper subscription fee to users in exchange for adverts.
The streaming giant - which is currently offered ad-free to almost 130 million households worldwide from $7.99 a month or £7.99 in the UK and €8.99 across Europe - will add an ad-supported tier, although the exact price difference is yet to be announced.
Kareem Daniel, the chairman of Disney's division in charge of streaming, said in a statement: "Expanding access to Disney Plus to a broader audience at a lower price point is a win for everyone - consumers, advertisers."
The Disney boss went on to explain that by lowering the subscription fee, it will allow "more consumers" to access the streaming plaform, whilst advertisers can reach a "wider audience."
He continued: "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."
Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution added that advertisers have been keen to work with the Walt Disney service since it was first launched.
She said: "Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory."
The Netflix rival - which launched back in 2020 and gained momentum during the start of the pandemic - sees the new ad-suppported tier as "building block" towards reaching their target of a quarter of a billion subscribers in the next two years.
The statement continued: "The ad-supported offering is viewed as a building block in the Company’s path to achieving its long-term target of 230-260 million Disney+ subscribers by FY24."
