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[03/04/22 - 06:00 AM]
Disney+ to Introduce an Ad-Supported Subscription Offering in Late 2022
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.

[via press release from Disney+]

DISNEY+ TO INTRODUCE AN AD-SUPPORTED SUBSCRIPTION OFFERING IN LATE 2022

Will Provide Greater Accessibility to a Broader Audience and Give Consumers More Choice and Control

NEW YORK, N.Y. and BURBANK, C.A. (March 4, 2022) - In a first for Disney's premier direct-to-consumer streaming service, Disney+ will expand its offerings for consumers by introducing an ad-supported subscription in addition to its option without ads, beginning in the U.S. in late 2022, with plans to expand internationally 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 Kareem Daniel, Chairman, Disney Media and Entertainment Distribution. "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."

Disney leads the market with quality and premium ad experiences. It is home to the industry's premier ad-supported streaming services, including Hulu, a pioneer and leader among all ad-supported video-on-demand subscription services, and ESPN+, which continues to pave the way for direct-to-consumer sports programming and live events. This type of innovation, driven by advertising that is contextually relevant to viewers, will soon extend to Disney+.

"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," said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. "Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can't wait to share more with advertisers at the Upfront."

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.

More details, including launch date and pricing, will be announced at a later date.

About Disney+

Disney+ is the dedicated streaming home for movies and shows from Disney, Pixar, Marvel, Star Wars, and National Geographic, as well as the new general entertainment content brand in select International markets, Star. As part of Disney's Media & Entertainment Distribution segment, Disney+ is available on most internet-connected devices and offers commercial-free programming with a variety of original feature-length films, documentaries, live-action and animated series, and short-form content. Alongside unprecedented access to Disney's incredible library of film and television entertainment, the service is also the exclusive streaming home for the latest releases from The Walt Disney Studios. Disney+ is available as a standalone streaming service or as part of The Disney Bundle that gives subscribers access to Disney+, Hulu, and ESPN+. For more, visit disneyplus.com, or find the Disney+ app on most mobile and connected TV devices.

Forward-Looking Statements

Certain statements in this communication may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business plans, future consumer and advertiser demand and reach and other statements that are not historical in nature. These statements are made on the basis of management's views and assumptions regarding future events as of the time the statements are made. Management does not undertake any obligation to update these statements.

Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including business decisions, as well as from developments beyond the Company's control, including: changes or further changes in domestic and global economic conditions; competitive conditions; consumer preferences or demand; legal or regulatory requirements; the advertising market; and timing, availability and performance of content.

Additional factors are set forth in the Company's Annual Report on Form 10-K for the year ended October 2, 2021 under Item 1A, "Risk Factors", Item 7, "Management's Discussion and Analysis," Item 1, "Business," and subsequent filings with the Securities and Exchange Commission.





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