Disney Plus has announced that it will launch its new cheaper ad-supported tier in the US on 8 December this year.
The plans will likely be implemented in the UK shortly after.
Equalling the current price of Disney Plus without ads, the new ad-supported tier will cost viewers $7.99 (£6.93) a month. Watching ad-free content, however, will set users back $10.99 (£9.01) a month.
The news comes months after Netflix first announced that it had plans to roll out cheaper subscriptions by including advertising material. The Walt Disney Company surpassed Netflix’s subscriber count in its most recent quarter.
READ MORE: Reactions: Will Netflix’s plans to implement ads work?
“With our new ad-supported Disney+ offering and an expanded line up of plans across our entire streaming portfolio, we will be providing greater consumer choice at a variety of price points to cater to the diverse needs of our viewers and appeal to an even broader audience,” Disney media and entertainment distribution chairman, Kareem Daniel, said.
The media brand will offer US customers a variety of packages including access to Disney owned ESPN Plus and Hulu streaming services. This ad bundle will set people back $12.99 (£10.64) a month.
While Walt Disney streaming services currently total 221 million subscribers, Netflix caters to 220.7 million. The streaming giant announced that it had lost one million subscribers last month.
Despite this, Disney have reported a loss of $1.1 billion (£901 million) last quarter.
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