As the streamer war enters its next big era, big providers like Netflix, HBO Max and Disney+ are realizing that a low-cost, ad-supported tier is a safe bet for subscriber growth and revenue potential. The Walt Disney Company has already confirmed that an affordable subscription, with commercials, is on the horizon for the home of Mandalorian And Moon Knight, but how many ads can people expect to see on the service? Speaking in a new interview with wall street journalDisney’s president of advertising sales and partnerships, Rita Ferro, confirmed details about this specific topic, including how many ad minutes per hour.
When the ad-supported tier launches on Disney+ later this year, it will start with “four minutes of ads an hour” for users, nearly twice as much as Hulu (which Disney also owns and operates). . Disney also confirmed that not everything on the service will have ads, as programming specifically targeted at preschool children will have no ads. According to the piece, preschool kids who have their own profile won’t see ads on the service at all. It’s worth noting that there are also more stringent guidelines and regulations by the FTC regarding advertising on children’s television, but it’s not clear to what extent Disney may have led to this decision.
“Expanding the reach of Disney+ to a wider audience at a lower price point – a win for consumers, advertisers and our storytellers – is a win-win for consumers, advertisers and our storytellers,” said Karim Daniels, president of Disney Media and Entertainment Distribution, in an opening statement regarding ad-supported. ” Disney+ Alternatives. “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”
It’s unclear how the ad-supported tier will be priced on Disney+ as the current service runs for $7.99 per month or $79.99 per year. For comparison, Hulu’s ad-supported tier is $6.99 per month and $69.99 per year, with an ad-free tier at $12.99 per month. It’s unclear whether Disney+’s ad-free tier will raise its prices in response to adding a version with ads, although Disney CEO Bob Chapek suggested there could be a price hike across the board.
“By using some of our other services, we can see the additive nature of an ad-driven service that enables us to keep prices low,” Chapek said during the company’s quarterly meeting last week. “Of course, this is made up of the additional revenue that we would get per user on ad spend. So we believe we can move over time and grow our net worth, which we value tremendously. Happened, and the increased price-value relationship, all-new material, but we’re very excited about it.”
Check back here for more details about the Disney+ tier with ads as we learn about it.
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Reference from comicbook.com