Key takeaways: 

• Disney revealed a new ad-supported tier for its Disney+ streaming service on Friday.
• Disney did not offer a launch date or cost for the new level but was told it would arrive later this year.
• Adding an advertising-support tier will let Disney increase average earnings per user — a metric that presently trails most competitors.

Disney+ Hotstar plans to make more profits this year: 

Disney declared on Friday a new ad-supported tier for its Disney+ streaming service that will release in the U.S. later this year.

Disney did not provide a release date or cost for the new tier. The new ad-supported tier will grow globally in 2023.

The firm stated in a press release that the new offering would be "a building block" in reaching its objective of getting 230 million to 260 million Disney+ subscribers by 2024.

Adding an advertising-support tier will let Disney grow average income per user — a metric that now trails most contenders. Comcast Chief Executive Officer Brian Roberts stated earlier quarter NBCUniversal's Peacock had ARPU of about $10 per month per user, primarily driven by advertising. Disney+'s average gain per user per month for Disney+ in the U.S. and Canada was $6.68 the prior quarter.

WarnerMedia's HBO Max, Paramount Global's Paramount+, and Discovery's Discovery+ are among the streaming platforms already present advertising-supported streaming alternatives.

Hulu, majority-owned by Disney, already presents an ad-supported product for $6.99 each month, likened to its ad-free service, which costs $12.99 per month. 

According to an individual familiar with the matter, Disney is streamlining backend technology to help sell advertising on all of its streaming products.