Disney+ to launch ad-supported subscription plan in Australia amid rising competition and cost-of-living pressures

Disney+ has announced it will introduce a new ad-supported subscription tier in Australia in the coming months, joining other major streaming platforms such as Netflix, Amazon Prime Video and Paramount+ that have already rolled out similar models. The new option, called ‘Standard with ads’, will sit alongside Disney’s existing Standard and Premium plans, which will remain ad-free. Pricing details for the ad-supported tier are yet to be confirmed but are expected to be comparable to other platforms, which currently charge between $7.99 and $11.99 per month for similar services. Disney’s current subscription rates range from $15.99 to $20.99 per month, and it has raised prices in both March 2024 and March 2025.

The move aligns with a wider trend in the streaming industry, where platforms are turning to advertising as an additional revenue stream while offering cheaper options for consumers facing cost-of-living challenges. Netflix’s experience has shown that users on ad-supported plans can be more profitable overall, thanks to combined subscription and advertising revenue. Deloitte’s 2025 Media & Entertainment Consumer Insights report found that Australians subscribe to an average of 3.7 entertainment services, with 78 per cent of households concerned about their overall spending.

Globally, Disney reported in January 2025 that its ad-tier reached around 157 million viewers monthly, with 60 per cent of new US Disney+ sign-ups choosing the ad-supported option. This shift reflects a broader restructuring of the streaming industry as it evolves towards hybrid models blending traditional television advertising with digital on-demand services.