Keeping step with Netflix, Disney has launched an ad-supported Basic tier for its popular Disney+ premium subscription video on demand (SVOD) service.

The new lower-priced ad-supported Disney+ Basic comes as the traditional premium tier version gets a price hike.

According to the ad-supported plan announcement, existing Disney+ subscribers have the option to switch to the Basic plan for $7.99/month. Those who choose to remain a Premium subscriber for $10.99/month (up from $7.99 per month) or $109.99/year require no further action. The company is also offering bundles of the ad-supported Disney+ tier with other Disney-owned premium streaming services like hulu and ESPN+ in the U.S. are as follows:

The Disney+ Basic plan includes access to the app’s full content catalog including version streamed in 4K, HDR10, Dolby Vision, and IMAX Enhanced quality. This is different than the recently added Netflix ad-supported tier which is limited to 720p HD resolution and does not permit access to some movies from third party studios.

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Disney+ Basic also allows users to create profiles and stream on up to four devices at one time.

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Basic viewers, however, will not get Dolby Atmos surround, the ability to download titles for offline playback, GroupWatch and SharePlay, according to a company announcement.

The giant media company said it has signed on some 100 advertisers at launch, and Disney+ Basic viewers can expect to see interruptions for with four minutes of ads per hour, in exchange for the lower price.

In a launch statement on the tier, Michael Paull, Direct to Consumer president said: “Today’s launch marks a milestone moment for Disney+ and puts consumer choice at the forefront. 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.”

Disney+ Basic is not yet supported on Roku products.

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By Greg Tarr

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