Disney has confirmed that it's launching a cheaper, ad-supported tier for its Disney+ service - first in the US, then internationally.

The new price plan will be available to members Stateside from "late 2022" and elsewhere in 2023.

"Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone - consumers, advertisers, and our storytellers," said the chairman of DIsney Media and Entertainment, Kareem Daniel.

"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."

It will be following in the footsteps of rival streaming services, such as Peacock and Paramount+, in offering an alternative to a full subscription.

It makes sense. With the world coming out of lockdowns and restrictions, and learning to live with Covid, subscriber growth is slowing for many video streaming services. Disney clearly sees the a cheaper tier as a way of reinvigorating interest in those who have so far abstained. Or to entice back former members.

Although new pricing details are "to be announced at a later date", Disney+ currently costs $7.99 per month to subscribe in the States (or $79.99 for a year) and other services, such as Discovery+ and Paramount+, charge around $4.99 for similar ad-supported memberships.

Disney+ - £7.99/m or £79.90/yr

Amazon

Disney itself even already offers an ad-supported plan for its Hulu service in the US. It charges $6.99 per month with advertising included. However, the usual ad-free monthly fee is almost twice that, at $12.99 per month, so unless it plans to significantly raise the usual Disney+ price in the coming year, any ad-supported tier is likely to be cheaper than on Hulu.