Disney is following up with its plans to offer a US version of the Disney+ streaming service that has commercials. Disney is launching an ad version of Disney+ in December; Additionally, the company plans to increase subscription prices for the classic ad-free Disney+ service as well as Hulu, which will increase the prices of both its ad-supported and ad-free versions. Along with these subscription price increases, Disney will offer consumers new versions of its streaming bundles, which traditionally include Disney+, ad-supported Hulu and ESPN+.
Reportedly, the ad-supported version of Disney+ will be named “Disney+ Basic” and will cost $7.99/month and launch on December 8. The ad-free version of Disney+ will increase from $7.99 to $10.99/month and will be called “Disney+ Premium”. Disney+ Basic will offer the same content library as Disney+ Premium – and some content will not include ads even though it is on Disney+ Basic. The current reported plan is for Disney+ Basic to run commercials of approximately four minutes per hour, which breaks up as one ad at the beginning of an hour-long piece of TV content, with two additional commercials at 20 and 40. The hits hit- the minute mark, and the fourth commercial at the end of the show. Overall, this is in line with many other streaming services that previously explored this model. The ads are said to be starting with 15-second and 30-second spots, with plans to expand to “the full suite of advertising products.”
Other types of ads can include large funding from companies for running a long ad (a minute or more) at the beginning of Disney+ content, or a recurring ad in a particular content block.
Disney first began announcing an ad-supported version of Disney+ in March of this year. The marketing angle the company took is that adding ads allows a less expensive version of Disney+ to attract more viewers:
“Expanding the reach of Disney+ to a wider audience at a lower cost is a win-win for everyone – consumers, advertisers and our storytellers,” said Karim Daniels, president of Disney Media and Entertainment Distribution, in March. “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.”
In fact, the price change makes it difficult to understand how Disney+ will be open to new lanes of consumers while maintaining its original price point for Disney+ Basic. If people weren’t paying $7.99/month to begin with, it looks like they’d still be a holdout. Then again, the Disney+ content library has evolved radically since its launch, and now includes rated-R content that some thought would never be included on the Disney service. A new sale is to be made.
Check out Disney+ Basic and Disney+ Premium in December.
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Reference from comicbook.com