Disney+ has finally rolled out its ad tier subscription as the platform looks to be more competitive amid the streaming wars.
With the introduction of ads on the House of Mouse app, the cost of the commercial-free service has jumped. Now, a monthly premium subscription costs $10.99 with the ad tier priced at $7.99. The launch comes after streaming giant Netflix also rolled out its paid ad tiers
Still, observers are concerned about the stability of streaming. A major worry for some is the ability to continue growing a subscriber base, according to Variety.
So far, Disney has secured more than 100 advertisers, including Chick-Fil-A, Mercedes, and Marriott. Customers will see 15-30 second spots across the tier, but Disney has said it wouldn't show more than four minutes of ads at a time. For users on accounts designated for people under the age of 17, ads will still run, but the specific demographic will not be targeted.
Deadline reported that about 23 percent of Disney+ users are willing to downgrade their current service to the ad-supported tier, according to a study by Kantar. This equates to about 46 million of the service's total 164 million users.
Disney executives are banking on the ad tier to help bring in addiitonal subscribers with a more attractive price point.