When the ad-supported tier of disneyplus launches it will have fewer commercials than you might think.
✖ As the streamer wars enters its next big era, large providers like Netflix, HBO Max, and Disney+ are realizing that a lower-cost, ad-supported tier is a safe bet for subscriber growth and revenue potential.
When the ad-supported tier launches later this year on Disney+ it will start with"four minutes of commercials an hour" for users, almost twice as much as Hulu . Disney also confirmed that not everything on the service will have ads though, as programming specifically targeted for preschool children will not have any commercials. According to the piece, Preschool children that have their own profiles won't see ads on the service at all.
"Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers," Kareem Daniel, Chairman, Disney Media and Entertainment Distribution, said in the initial statement about the ad-supported Disney+ option."More consumers will be able to access our amazing content.
It's unclear how the ad-supported tier on Disney+ will be price as the current service runs $7.99 a month or a $79.99 a year. For comparison's sake, Hulu's ad-supported tier is $6.99 a month and $69.99 a year with its ad-free tier running $12.99 a month. It's unclear if Disney+'s ad-free tier will raise its prices in response to the addition of a version with ads, though Disney CEO Bob Chapek did suggest that a price increase across the board could occur.
"Using some of our other services we can see the additive nature of an ad driven service that enables us to keep the price lower," Chapek said during the company's quarterly meeting last week."Of course that's made up for by the additional revenue that we will get per user on the advertising spending.
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