Disney+ ad-supported tier launches with competitive pricing and features to take on Netflix

As promised, Disney+ launched its ads-supported subscription tier on Thursday. And its monthly pricing, along with the perks included in the plan, is giving Netflix’s Basic with Ads option a run for its money.

The company, which is a relatively new player in the media streaming space, first announced its plan to introduce an ad-supported tier last March. At the time, Disney+ said the cheaper option is crucial, to the extent of calling it “a building block,” in reaching its target of 230 million to 260 million subscribers by the fiscal year 2024.

“Today’s launch marks a milestone moment for Disney+ and puts consumer choice at the forefront,” Disney’s president of Direct to Consumer, Michael Paull, said in this week’s announcement post. “With these new ad-supported offerings, we’re able to deliver greater flexibility for consumers to enjoy the full breadth and depth of incredible storytelling from The Walt Disney Company.”

The ad-supported tier, officially named Disney+ Basic, will cost $7.99 per month. That is only a dollar higher than the monthly subscription fee for Netflix’s Basic with Ads.

However, Disney+ Basic offers more perks that are notably missing from Netflix’s Basic with Ads. For one, Disney said subscribers of its ad-supported tier would gain access to the “full content catalog,” including original titles, offered in its ad-free plans. Netflix’s cheaper plan, on the other hand, does not include some TV shows and movies due to licensing limitations.

Disney+ Basic will also allow subscribers to create up to seven profiles per subscription. Each profile can have PINs and content ratings as part of the app’s Parental Controls feature.

Disney is also allowing Disney+ Basic subscribers to enjoy simultaneously streaming on up to four devices. For comparison, Netflix’s Basic with Ads can only be used on one device at a time.

The list of supported video formats and qualities offered on Disney+ Basic is also far superior. The company essentially did not put any limit, so depending on the subscriber’s device and TVs, they can watch movies and TV shows in Full HD and up to 4K Ultra HD.

Subscribers will also get Dolby Vision, HDR10, and Expanded Aspect Ratio with IMAX Enhanced support. But with Netflix’s ad-supported plan, members can only watch in HD (up to 720p). But Netflix’s advantage is that its cheaper offer is available in more countries, while the Disney+ Basic only launched in the United States and will not be available in other territories until 2023.

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